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Bankruptcy & Debtors Rights

If your debt has become unmana best alternative. For individuals, the bankruptcy code offers two choices, Chapter 7 and Chapter 13. For Businesses, the options are Chapter 7 and Chapter 11.

Chapter 7 Overview
In a Chapter 7 Bankruptcy, a debtor’s creditors are repaid through the liquidation of certain assets. The debtor files a Bankruptcy petition with the court in which the debtor classifies his or her property according to its type and value. Using exemptions that have been established in the Bankruptcy Code, the debtor will be allowed to keep some, or all, of his assets depending on what they are and what they are worth. The remaining assets are sold by the Bankruptcy trustee to repay the debtor’s creditors. For example, a debtor would be able to keep his personal residence (with less than $300,000 in equity) and 401K retirement plan; however, he would most likely have to give up his vacation home and personal stock. For a more detailed explanation of Chapter 7 Bankruptcy, use the link below or contact us for your free consultation.

Chapter 13 Overview
If a debtor has the ability to repay at least 10% of his or her debts over the course of 3 to 5 years, then a debtor generally must file a Chapter 13 Bankruptcy. In a Chapter 13, a debtor’s excess income is paid to a bankruptcy court that in turn pays the debtor’s unsecured creditors. The payments are based on the debtor’s ability to pay and creditors are required to participate. At the end of the repayment period, all remaining unsecured debts are discharged. Another benefit of a Chapter 13 is that it will allow a debtor to catch up on late payments, such as late mortgage payments, without loosing their property. Fore more information, visit the Chapter 13 page using the link below or contact us for a free consultation.

Chapter 11 Overview
Chapter 11 is generally reserved for businesss who are organized as a partnership or corporation. This type of bankruptcy allows a business to remain open and to reorganize and restructure its debts.



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No representation is made that the quality of legal services to be performed is greater than the quality of legal services performed by other lawyers.  This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

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