What Can Bankruptcy Do For You?

Whether it’s looming credit card debt debt, a legal judgment against you, or perhaps even spiraling medical bills that have long since been sent to collections, declaring bankruptcy can be a great way to start fresh and wipe the financial slate clean. Bankruptcy is a complex federal process. We can help review your situation and decide whether you’re a good candidate for bankruptcy. And if you do decide to file, it’s important to have an experienced attorney on your side handling the case. Once the Petition is filed with the court, all assets in your name (even those that you may have transferred out of your name within the past two years) immediately become part of your bankruptcy estate. It’s crucial that your bankruptcy petition is expertly prepared in order to ensure your assets remain your assets post-bankruptcy. This is not an area of law to ‘do-it-yourself’ in order to save a few dollars.

Chapter 7 vs Chapter 13 Bankruptcy

The two primary types of bankruptcy most individuals file are Chapter 7 or Chapter 13. The biggest difference between the two is how your property and debts are treated:

  • Chapter 7 (also known as liquidation bankruptcy) can involve the potential selling of some of your property to pay off your debts. In a majority of cases, the entirety of your property may be exempt from being touched by the bankruptcy trustee. It is important to have an experienced attorney review your assets/property to figure out the best strategy to protect those in your bankruptcy.
  • Chapter 13 (also known as reorganization bankruptcy) is a good option for those who may not qualify for Chapter 7 or may have property in danger of being liquidated by the Chapter 7 trustee. Chapter 13 bankruptcy involves either a 3-year or 5-year repayment plan of at least your secured debts (mortgages, car loans, etc.). Depending on the individual facts of your case, it may also involve the repayment of a percentage of your unsecured debts (credit cards, personal loans, medical bills, etc.). In certain instances, the entirely of your unsecured debt is wiped out and requires zero repayment.
If you’re considering filing bankruptcy, contact us today so we can provide the expertise required.