The bankruptcy attorneys at Damon Richards Law Firm have the experience and skills to navigate the federal bankruptcy laws on your behalf. There are many details and provisions of bankruptcy law to consider, and our attorneys will make sure that if and when you are ready to file bankruptcy, it will be done correctly and in a timely manner.
Thousands of individuals and families in the U.S. have filed for bankruptcy in the past decade or so. Most people who file bankruptcy do not do so as a way to escape debt accrued by spending unwisely on material goods. The majority of bankruptcies are based on crises or circumstances that are out of the individual’s control, such as:
loss of a job (layoff, termination)
loss of health insurance
major illness or accident causing huge medical bills
foreclosure of the family’s home
predatory lending practices
being caught in the adjustable mortgage crunch
an unforeseen downturn in one’s business or income
Although the idea of filing for bankruptcy can be troubling, there’s really no shame in doing so any more. Bankruptcy can be the most appropriate, logical and beneficial step you can take to get back in control of your finances. However, it’s not always the answer — and our attorneys will give you honest and accurate advice regarding whether a bankruptcy is right for you at this time.
Below is a brief summary of the three most common types of bankruptcy. They each have more complex aspects to consider, and our attorneys will thoroughly explain the relevant bankruptcy provisions for you so that you’ll be able to act with complete confidence.
Bankruptcy for Individuals and Couples
There are two chapters (types) of bankruptcy that an individual or married couple can use to regain control of their finances: Chapter 7 and Chapter 13.
* Chapter 7 Bankruptcy
In a Chapter 7 bankruptcy, all (or nearly all) of the person’s debts are “wiped out,” or let go. In exchange, the person must give up all of his or her non-exempt property, such as:
equity in real estate
expensive vehicle(s) that have already been paid for
unnecessary electronic equipment
expensive clothing such as furs and jewelry
In a Chapter 7 bankruptcy, the individual’s or couple’s debts are “discharged” when the bankruptcy process is complete, which takes about three to six months.
* Chapter 13 Bankruptcy
In this type of bankruptcy, debtors don’t have to give up any of their property, but they are agreeing to pay off all or nearly all of their debts over a stated period (usually three to five years). The debts are consolidated (grouped) into one total sum that may be reduced from the actual debt figure.
A Chapter 13 bankruptcy can be the right alternative when an individual or couple simply needs help catching up on debts such as a mortgage, car payments, medical bills and credit card balances.
Bankruptcy For Businesses
* Chapter 11
Businesses such as corporations, partnerships and sole proprietorships can file a Chapter 11 bankruptcy as a way to reorganize the business and keep it operating, while creditors get paid.
Please feel free to contact us for more information on financial troubles.