Our firm is dedicated to providing quality and cost effective legal guidance to clients who are faced with the difficult decision of declaring bankruptcy. We understand how stressful it can be to be overburdened by debt and hounded by creditors. Bankruptcy may provide a solution to what seems like an overwhelming problem and give the Debtor a Fresh Start. The bankruptcy lawyer's goals are to help debtors make a fresh start. A skillful attorney can guide you through the complicated legal maze of bankruptcy.

Consumer Bankruptcy Law provides two basic forms of relief: (1) liquidation and (2) reorganization. Most bankruptcies filed in the United States involve liquidation, which is governed by Chapter 7 of the Bankruptcy Code. Chapter 13 usually applies to individual consumers with smaller debts. Reorganization provides a greater opportunity to retain assets if the debtor agrees to pay off debts according to a plan approved by the bankruptcy court. If the debtor fails to do so, however, the court may order liquidation.

Consumer Bankruptcy

Consumer bankruptcy is a method by which debtors may be able to get out from under their debt and make a fresh start. The filing of a bankruptcy will have a negative impact on their credit ratings; however, it will give the debtor relief from the consistent torment of debt collectors. When you file a Chapter 13 Bankruptcy you file a plan that allows the debtor to retain more assets while working to pay off his or her debts. An experienced bankruptcy attorney can help you choose the right course of action for your based on your assets and debts and should be determined by each debtor’s unique situation.

Chapter 7 Liquidation

Chapter 7 is a federal bankruptcy law enacted by Congress to give single and married individuals in financial difficulty a fresh start. To qualify for Chapter 7, an individual debtor has to satisfy a financial means test. In a Chapter 7 liquidation case, a bankruptcy "trustee" collects the debtor's "nonexempt" property and converts it into cash and disperses it to various creditors according to an order of priority described in the Bankruptcy Code. Not all creditors receive the full amount owed through this process and many creditors often do not receive anything at all. When liquidation and distribution are complete, the bankruptcy court may discharge any remaining debts of a consumer debtor.

Chapter 13 Reorganization

Chapter 13 is a repayment plan. It is a federal law designed to help single and married individuals (including owners of businesses) repay a portion of their debts with dignity and peace of mind. A plan for the repayment of debts is created by you and your attorney and confirmed by the Court. The process of creating the plan and getting it confirmed by the Court takes about six months. Upon successful completion of the plan, the bankruptcy is discharged. If the debtor fails to adhere to the plan, however, the court may still order liquidation.

Effect of a Discharge

Discharge is the bankruptcy term for wiping out many of the debtor's remaining debts at the conclusion of the bankruptcy proceeding. A discharge is available to only certain debtors and only certain debts are discharged at the conclusion of the bankruptcy proceeding.

Conclusion

Lawyers specializing in bankruptcy law can help debtors overcome obstacles to the repayment of debt. Experienced bankruptcy attorneys have the knowledge and expertise to help their clients get out from under formidable debt and emerge as productive citizens. Bankruptcy may provide a solution to what seems like an overwhelming problem and give the Debtor a Fresh Start.