Chapter 7:
Filing for Bankruptcy is a very important decision financially and, in many cases, emotionally. Our Chapter 7 bankruptcy attorneys at Gale, Angelo, Johnson & Patrick P.C. want to ensure that you are prepared for the process of filing a Chapter 7 bankruptcy.
Chapter 7 bankruptcy also knows as “Liquidation” is a type of bankruptcy can be used for individual filings as well as business filings. In most cases, debtors with median income can file a chapter 7 and receive a discharge of their unsecured debts like credit cards and medical bills. Typically, a chapter 7 case allows a debtor to retain exempt property and obtain a discharge that releases them from personal liability on unsecured debts and prevents the creditors from taking any legal action against the debtor. It can be used to stop a wage garnishment or bank levy. The Automatic Stay that goes into effect once a bankruptcy case is filed also prevents creditors from calling, emailing, or doing anything else to collect against you.
The chapter 7 process is also generally fairly quick. Most cases complete about 3 months after they are filed and only require the debtor to make one appearance in front of a chapter 7 trustee. Most debtors will not need to go to court or appear before a bankruptcy judge.
If you are considering filing for a chapter 7 bankruptcy it is important that you hire counsel to fully understand your different options, confirm you qualify and are eligible to file, and prepare your legal documents properly to ensure your case does not get thrown out or your assets lost. To discuss your financial situation, call us at 916-290-7778 to schedule a FREE initial case evaluation today!
Chapter 13:
Chapter 13 bankruptcy offers individual debtors an opportunity to propose and carry out a repayment plan that allows them to pay back creditors over an extended period, usually between 36 to 60 months. Debtors make only one payment, which covers most of their debts. They also get the benefit of an automatic stay so, unlike debt consolidation or other non-bankruptcy options, creditors cannot continue to harass, file lawsuits, or garnish wages while they are in a chapter 13 case.
A debtor filing a chapter must show the courts that they have the resources to pay their debts, otherwise, a judge will not approve the repayment plan. Once the plan is approved, a bankruptcy trustee appointed by the courts will make payments to creditors according to the plan that the debtor proposed and got approved. Chapter 13 can be a useful way to pay back taxes owed to the IRS or the state, pay back a car loan, or get caught up on missed mortgage payments. The filing of a case usually stops a foreclosure from occurring or starting if it has not gotten that far.
For some debtors who do not qualify for a chapter 7 or who have assets, like a house or other valuable items, that could be lost in a chapter 7 liquidation, chapter 13 provides relief while allowing them to retain possession of all of their belongings and can discharge their debts after paying only pennies on the dollar.
Are you facing foreclosure, garnishment, or simply cannot seem to get your head above water? Please call us today at 916-290-7778 to discuss your chapter 13 options.
Chapter 11:
Our firm is also experienced in Chapter 11 bankruptcy. Chapter 11 provides relief to individuals who do not qualify for Chapter 13. Corporations, LLC’s, and other business entities can also re-organize their debts through a Chapter 11 plan.
Call our experienced team today to discuss your Chapter 11 bankruptcy options 916-290-7778.
(Please note: we do not currently offer Chapter 11 services in all office locations)
