Bankruptcy
If you are struggling to make ends meet, a Chapter 7 or 13 bankruptcy might be the best way for you to get a fresh start.
Chapter 7
Chapter 13
To do determine if a Chapter 7 or 13 Bankruptcy is right for you, contact the experienced attorneys at Alexander, Wagner & Kinman for a free consultation.
This information is intended to provide broad, general information about the law and is not intended to be legal advice. Before applying this information to a specific legal problem, readers are urged to seek advice from a licensed attorney.
Chapter 7
- One of the primary purposes of bankruptcy is to discharge certain debts to give an honest individual debtor a "fresh start." The debtor has no liability for discharged debts. In a chapter 7 case, however, a discharge is only available to individual debtors, not to partnerships or corporations.
- Filing a petition under chapter 7 "automatically stays" (stops) most collection actions against the debtor or the debtor's property. As long as the stay is in effect, creditors generally may not initiate or continue lawsuits, wage garnishments, or even telephone calls demanding payments. The bankruptcy clerk gives notice of the bankruptcy case to all creditors whose names and addresses are provided by the debtor.
- Like any issue with the government, this process involves a large amount of paperwork and bureaucratic red tape- we will be with you every step of the way to guide you through this complex legal area.
Chapter 13
- If you do not qualify for a Chapter 7 bankruptcy (generally if your income is too high) then a Chapter 13 might be the best option
- In Chapter 13 bankruptcy, you keep your property, but pay back all or a portion of your debts over a three to five-year period. This is unlike Chapter 7 bankruptcy, where most of your debts are cancelled but you may have to surrender some property to the bankruptcy trustee to pay your creditors. Because you end up paying most of your debts over time in Chapter 13 bankruptcy, it is also called reorganization bankruptcy.
To do determine if a Chapter 7 or 13 Bankruptcy is right for you, contact the experienced attorneys at Alexander, Wagner & Kinman for a free consultation.
This information is intended to provide broad, general information about the law and is not intended to be legal advice. Before applying this information to a specific legal problem, readers are urged to seek advice from a licensed attorney.