Chapter 7, 13, and 11 Bankruptcies for Individuals
The thought of filing bankruptcy is often stressful, but it shouldn’t be. Bankruptcy is a business decision and discussing your options with an experienced attorney can help you decide whether bankruptcy is appropriate for your situation and what chapter of the Bankruptcy Code best fits your needs.
I have assisted thousands of individuals filing for Chapter 7 liquidation. Filing a Chapter 7 bankruptcy can often be a time- and cost-effective way of eliminating unsecured debt and getting the fresh start intended by the Bankruptcy Code. Filing is not without consequences and restrictions. Knowing if you qualify for a Chapter 7 and whether your debts will be discharged and your assets protected are complicated matters and should be discussed with an attorney. Additionally, we can discuss whether an alternative debt resolution such as debt consolidation or debt negotiation would work for you.
Many people find tremendous relief under the protections of a Chapter 13 bankruptcy. A Chapter 13 client proposes a repayment plan to the Bankruptcy Court. The plan may be used to catch up on a delinquent mortgage to avoid foreclosure, pay tax debt that cannot be discharged, or to reduce a car loan to the value of the car. The plan may include payment towards unsecured debt, depending upon the person’s income level. When the plan payments are completed, the Bankruptcy Court will issue a discharge of the remaining dischargeable unsecured debt. A Chapter 13 also allows for certain second or junior mortgages to be removed and may allow for the discharge of money owed under a marital property settlement agreement. I will discuss the potential benefits of a Chapter 13 case and creatively design the best repayment arrangement possible.
Chapter 11 reorganization is not only for businesses. Some individuals can benefit from the protections and reorganization of debts provided by an effective Chapter 11 case. Filing a Chapter 11 case may be a practical way for a higher income or net worth individual to restructure the repayment of debt when faced by overwhelming tax debt, potential foreclosure, a failing business or other financial concern. Chapter 11 cases are extremely complicated and should not be attempted without consulting an attorney.
Filling out the Client Intake Form and providing the documents required by the Bankruptcy Court before or at your initial meeting will assist me in determining the best course of action for your case but do not establish an attorney client relationship or guarantee representation.