Bankruptcy Overview

Bankruptcy Overview

Should you file bankruptcy? Sometimes it can be avoided.be avoided. We can assist you in negotiating the terms of your debts, such as credit cards, so that they can be paid off in a reasonable period of time and bankruptcy avoided.

Chapter 7: Known as a “liquidation plan”, this is probably the most frequently chosen of all the bankruptcy plans because all unsecured (e.g., credit cards, personal loans, medical bills, leases, business debts, tax penalties over 3 years old, accident claims, judgments, etc.) debts may be eliminated

Chapter 11: This reorganizes one’s financial affairs and continue the business, so it is usually appropriate for businesses of all sizes. More recently, due to high secured debts (mortgages, car loans, and similar), many individuals find themselves in Ch. 11 although they are not engaged in any business activity.

Chapter 13: This requires a debtor to make some payments to creditors, usually over a period of three to five years. It’s similar to debt settlement plans that may be negotiated outside bankruptcy. Debtor typically keeps all the property. Most frequently debtors choose this plan in attempt to keep the home, car or similar essential items that may not be protected in Ch.7 Foreclosures:

Foreclosures: It may be possible to prevent or delay a foreclosure if certain legal requirements are satisfied. The most important matter is to act immediately after you receive a Notice of Default or similar document informing you of the upcoming foreclosure.