We can help you in filing for bankruptcy protections under Chapter 7, Chapter 11 and Chapter 13.

Chapter 7

A Chapter 7 bankruptcy filing generally provides the quickest fresh start for a person by discharging most unsecured debts (i.e., credit card charges more than 90-days old that were incurred with good faith intent to pay; medical bills, some taxes, unsecured guarantees and notes; most judgments and garnishments; repossession debts; eviction or broken lease debts; past utilities, etc.). A Chapter 7 does not discharge certain taxes such as income taxes for years less than three years-old and trust fund taxes, alimony, child support, student loans and credit charges within sixty days of filing bankruptcy and some other debts. If you are current with your payments on your car/truck loans and your home mortgage and you want to retain those items, you will need to continue making these monthly payments. Usually, filing a Chapter 7 protects your house, vehicles, home furnishings, wages, retirement plans and life-insurance-cash value from creditors.

Chapter 11

Chapter 11 allows a business to continue to operate while reorganizing its finances. Individuals who own unincorporated businesses may file for Chapter 11 protection, as well as partnerships, corporations and other forms of business entities. A debtor usually retains possession and control of its business, but is held to the standards of a fiduciary. The debtor is allowed an exclusive right to file a Plan of Reorganization with the Bankruptcy Court along with a Disclosure Statement within 120 days following the filing of its Bankruptcy Petition. Upon the filing of a Disclosure Statement and Plan of Reorganization, the Court holds a hearing to determine if the Disclosure Statement contains adequate financial information for creditors to vote for or against the proposed Plan. Upon approval of the Disclosure Statement, ballots are mailed to the creditors. The debtor hopes to obtain more than fifty percent (50%) of the votes of each creditor class and at least two thirds (2/3rds) of the dollars represented by the voting creditors in favor of the proposed Plan. Even if there are no votes against the proposed Plan, the Court will hold a Confirmation Hearing and must find that the Plan is feasible, is proposed in good faith and that the Plan is in compliance with the Bankruptcy Code and is not likely to be followed by liquidation or a need for further financial reorganizations.

Chapter 13

Persons who have regular sources of income and owe unsecured debts of $336,900.00, or less, and whose secured debts are $1,010,650.00, or less, may file Chapter 13. Debtors facing foreclosure of their home, repossession of their vehicles, seizures of assets and IRS wage garnishments, can stop such actions of creditors by filing for Chapter 13 protection if they meet the qualifications of having a regular source of income and the total amount of their debts are within the amounts of debt limitations. Debtors file a Plan of Reorganization involving monthly plan payments for a minimum of three years, but not more than five years. During the term of the Plan, the debtor pays any arrearages for secured property that are to be retained and non-dischargeable liabilities such as certain kinds of taxes. Payments to the Court-appointed Chapter 13 Trustee must begin within thirty (30) days of the petition date. The Chapter 13 Trustee distributes ninety percent (90%) of the funds to creditors pursuant to the terms of the Plan. The Trustee retains the remaining ten percent (10%) to cover his/her costs of operation. Usually, unsecured creditors receive less than full payment of their claims - sometimes very little or nothing. Automobile and truck loans can be modified to pay the lienholder only the value as of the date of the petition, plus reasonable interest over the plan-payment period.

The Chapter 13 debtor is entitled to receive a Discharge Order from the Bankruptcy Court upon completion of all payments of a Plan that has been confirmed by the Court. The Discharge Order releases the debtor from all claims of creditors provided for in the Plan or disallowed by the Court. A creditor who received timely notice of the filing of the Chapter 13 petition, but failed to file a formal written clam may not thereafter bring or continue a legal action to collect the discharged debt. Certain long-term obligations of a debtor are not, however, discharged by the filing or successful completion of a confirmed Chapter 13 Plan. Examples of such obligations of the debtor that survive completion of the Plan are home mortgage payments and vehicle payments when a debtor elects to retain such assets, alimony, child support, most student loans, debts arising from death or personal injury due to driving while intoxicated or under the influence of drugs; and debts for restitution or for a criminal fine.

If a Chapter 13 Trustee or a creditor files with the Court an objection to Confirmation of a Plan, the Court schedules a hearing to determine if the proposed Plan complies with the law. The Plan must provide that all the debtor's projected net income will be paid to the Chapter 13 Trustee for the life of the plan. Net income is determined by applying the debtor's take-home pay against his monthly reasonable and necessary expenses.