Bankruptcy is a legal proceeding in which people who cannot pay their bills can get a fresh financial start. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in federal court. Filing bankruptcy immediately stops all of your creditors from seeking to collect debts from you, at [...]
Bankruptcy may make it possible for you to: Eliminate the legal obligation to pay most or all of your debts. This is called a 'discharge' of debts. It is designed to give you a fresh financial start. Stop foreclosure on your house or mobile home and allow you an opportunity to catch up on missed [...]
Bankruptcy, however, cannot cure every financial problem. Nor is it the right step for every individual. In bankruptcy, it is usually not possible to: Eliminate certain rights of 'secured' creditors. A 'secured' creditor has taken a mortgage or other lien on property as collateral for the loan. Common examples are car loans and home mortgages. [...]
There are four types of bankruptcy cases provided under the law: Chapter 7 is known as 'straight' bankruptcy or 'liquidations.' It requires a debtor to give up property which exceeds certain limits called 'exemptions', so the property can be sold to pay creditors. Chapter 11, known as 'reorganization', is used by business and a few [...]
In a bankruptcy case under chapter 7, you file a petition asking the court to discharge your debts. The basic idea in a chapter 7 bankruptcy is to wipe out (discharge) your debts in exchange for your giving up property, except for 'exempt' property which the law allows you to keep. In most cases, all [...]
In a chapter 13 case you file a 'plan' showing how you will pay off some of your past-due and current debts over three to five years. The most important thing about a chapter 13 case is that it will allow you to keep valuable property - especially your home and car - which might [...]
Every bankruptcy case is different. After an evaluation of your case, our staff can provide you with a fee. Generally, we can accept a partial payment at the time of filing with the remainder due at your creditor’s meeting.
In most cases you will not lose your home or car during your bankruptcy case as long as your equity in the property is fully exempt. Even if your property is not fully exempt, you will be able to keep it, if you pay its non-exempt value to creditors in Chapter 13. However, some of [...]
In a Chapter 7 case, you can keep all property that which the law says is 'exempt' from the claims of creditors. In general, you can keep retirement accounts, some equity in your home and car, and household goods, furniture and appliances. Your attorney can give you detailed advice as to the exemption statutes in [...]
Yes, with some exceptions. Bankruptcy will not normally wipe out: money owed for child support or alimony, fines, and some taxes; loans you got by knowingly giving false information to a creditor, who reasonable relied on it in making you the loan; debts resulting from 'willful and malicious' harm; student loans owed to a school [...]