Bankruptcy
Get debt relief, protect your home, protect your assets.
Navigating the complexities of bankruptcy can be overwhelming, but you don't have to face it alone. Our experienced legal team is here to guide you through every step of the process, providing you with the expertise and support you need to regain control of your financial future.
File for Bankruptcy
Chapter 7 Bankruptcy: Eliminate most unsecured debts and get a fresh start.
Chapter 13 Bankruptcy: Reorganize your debts and create a manageable repayment plan.
Chapter 11 Bankruptcy: For businesses looking to restructure and remain operational.
Evaluate your Assets
Debt Discharge: Determine which debts can be eliminated and help you achieve a clean slate.
Asset Protection: Safeguard your assets while navigating the bankruptcy process.
Foreclosure Defense: Protect your home from foreclosure and explore alternatives.
Creditor Negotiations: Work directly with creditors to reduce your debt burden.
Priority Claims: Handle claims to ensure your financial obligations are appropriately addressed.
What Happens When You File for Bankruptcy?
When you file for bankruptcy, the process begins with submitting a petition to the bankruptcy court. This petition includes detailed information about your debts, assets, income, and expenses. Upon filing, an automatic stay goes into effect, which halts most collection activities by creditors. The court then assigns a bankruptcy trustee to your case, who will review your petition and oversee the bankruptcy process. Depending on the type of bankruptcy you file—Chapter 7, Chapter 11, or Chapter 13—your assets may be liquidated to pay off creditors, or you may follow a repayment plan to settle your debts over time.
Kinds of Bankruptcy
Chapter 7: Involves liquidating non-exempt assets to pay off debts. If you meet all requirements and no objections are raised, the court will discharge your eligible debts, giving you a fresh financial start.
Chapter 11: Often used by businesses and individuals with substantial debts and assets. It allows for reorganization under the bankruptcy laws of the United States. You can continue operating your business while you follow a court-approved plan to repay creditors over time.
Chapter 13: Allows individuals with a regular income to develop a plan to repay all or part of their debts over three to five years. Throughout the process, you will attend a meeting of creditors, where they can ask questions about your financial situation.
To learn more about filing for Chapter 7 or Chapter 13 bankruptcy, visit our blog!
Frequently Asked Questions
Q: What types of bankruptcy can I file?
A: The most common types of bankruptcy for individuals are Chapter 7, Chapter 11, and Chapter 13. Chapter 7 involves liquidating non-exempt assets to pay off debts. Chapter 11 allows for reorganization, typically used by businesses or individuals with significant debts. Chapter 13 involves a repayment plan to settle debts over three to five years.
Q: Will bankruptcy stop all creditor actions against me?
A: Yes, filing for bankruptcy triggers an automatic stay, which halts most collection actions, including phone calls, wage garnishments, and lawsuits.
Q: Can I keep my home and car if I file for bankruptcy?
A: It depends on the type of bankruptcy and the value of your assets. In Chapter 7, certain exemptions may allow you to keep your home and car. In Chapter 11, you may be able to keep your assets while reorganizing your debts. In Chapter 13, you can include your mortgage and car payments in your repayment plan.
Q: How long does the bankruptcy process take?
A: The length of the process varies. Chapter 7 typically takes about 3-6 months from filing to discharge. Chapter 11 can take several months to years, depending on the complexity of the case. Chapter 13 lasts 3-5 years due to the repayment plan.
Q: Will bankruptcy ruin my credit forever?
A: Bankruptcy will negatively impact your credit score, but it is not permanent. Chapter 7 bankruptcy remains on your credit report for 10 years, Chapter 11 for up to 10 years, and Chapter 13 for 7 years. You can start rebuilding your credit immediately after discharge.
Q: Can all debts be discharged in bankruptcy?
A: Not all debts can be discharged. Common non-dischargeable debts include student loans, child support, alimony, certain taxes, and debts from fraud or malicious actions.
Q: Do I need a lawyer to file for bankruptcy?
A: While you can file for bankruptcy on your own, having an experienced bankruptcy attorney can help ensure that the process goes smoothly and that your rights are protected.
Q: What is the means test for Chapter 7 bankruptcy?
A: The means test determines if you qualify for Chapter 7 bankruptcy by comparing your income to the median income for your state. If your income is below the median, you qualify. If it is above, you may need to file for Chapter 13.
Q: What happens to my credit cards when I file for bankruptcy?
A: Credit card debts are typically discharged in bankruptcy, meaning you are no longer responsible for paying them. However, your credit card accounts will be closed.
Q: Can I file for bankruptcy more than once?
A: Yes, but there are time restrictions. You must wait 8 years between Chapter 7 filings and 2 years between Chapter 13 filings. The waiting periods between different types of bankruptcy vary. Chapter 11 has different timing rules depending on the specifics of the case.
Q: Who typically files for Chapter 11 bankruptcy?
A: Chapter 11 bankruptcy is typically filed by businesses, but individuals with substantial debts and assets may also file. It allows for reorganization and continued operation while repaying creditors.
Balisok & Kaufman PLLC
We have extensive experience in bankruptcy law and a proven record of successful outcomes.
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Take the first step towards financial freedom. Contact us today for a confidential consultation and let us help you find the best path forward.
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