Bankruptcy Law and You
If you are saddled with financial obligations that you cannot afford to pay, bankruptcy may be the best solution for your problem. Companies, couples and individuals can file for bankruptcy to have debts partially or completely removed. Federal laws govern bankruptcy proceedings, and the Anchor Law Firm is knowledgeable and has extensive experience representing clients who have decided to claim bankruptcy.
You must submit a petition and pay a fee to the bankruptcy court to file for bankruptcy protection. The petition contains data regarding your income, your expenses, your assets and sworn statements from your creditors detailing your debts. After your petition is submitted, a court hearing will be held to examine the data in your petition.
Types of bankruptcy
Chapter 7, Chapter 11 and Chapter 13 are the most common types of bankruptcy available to people or businesses in the United States who cannot pay their bills for one reason or another. Of these three, Chapter 7 is filed most frequently.
Chapter 7 is a liquidation bankruptcy. If you file a Chapter 7 petition, you will be required to relinquish all your “non-exempt” property to a bankruptcy trustee. Exempt property includes such things as household items, work tools and clothing. Sometimes, you may keep your vehicle and home. Your non-exempt possessions will be sold by the Chapter 7 trustee, who will split the proceeds among your creditors. In some cases, your debts will be fully repaid, but usually creditors do not receive the entire amount of your obligation. Regardless of what percentage is repaid, the debt is considered to be forgiven, and your creditors are legally forbidden from trying to collect any debt that has been discharged through bankruptcy.
If you don’t want to give up your possessions, the Anchor Law Firm can file a Chapter 13 petition for you. You must make monthly payments against your debts for the next three to five years. You can also restructure a car loan by extending the payments for 60 months and reducing the principal to the market value of the vehicle. Modifications can also be made to student loans, tax debts and your mortgage.
Not everyone can file for bankruptcy protection. If you filed a Chapter 7 within the previous eight years, you are ineligible. The waiting period for a Chapter 13 is six years. If you make enough money to pay your debts, you may not file for bankruptcy.
Chapter 11 bankruptcy is like a Chapter 13 for businesses. If you own a company that is insolvent, you can file a Chapter 11 bankruptcy that will allow you to remain in business. You can reorganize your debts while restructuring and reducing your company’s liabilities.
The Anchor Law Firm is standing by to help you navigate the complex federal laws and regulations regarding personal or business bankruptcies. Any error can cause your case to be dismissed by the court, which can have disastrous consequences. If you’re considering filing for bankruptcy, contact the Anchor Law Firm for a free case evaluation.