There are three types of bankruptcy that we handle:
What is Chapter 7 Bankruptcy?
A Chapter 7 bankruptcy can clear away many types of unsecured debts. It is also called a straight or liquidation bankruptcy. If you fall behind on your bills and don’t have the means to afford monthly payments and living expenses, a Chapter 7 bankruptcy could be your last resort to reset your finances. With this form of bankruptcy, you may have to sacrifice some of your possessions and it does have a long-lasting negative impact on your credit score.
REQUIREMENTS FOR CHAPTER 7 BANKRUPTCY:
There are a few requirements to qualify for Chapter 7 bankruptcy. These include:
- If you are an individual debtor with primarily consumer debts, you must complete a credit counseling course with an approved agency. This must be done within 180 days of filing and you must present a certificate of completion.
- You must fall below the median income for the same-size household in your state or you must pass a means test that determines if your disposable income is high enough to make partial payments to unsecured creditors.
- You cannot have filed for Chapter 7 in the past 8 years.
- You cannot have filed for Chapter 13 in the past 6 years.
- If you tried to file for Chapter 7 or 13 and your case was dismissed, you must wait at least 181 days before you can try again.
THE PROCESS OF OBTAINING CHAPTER 7 BANKRUPTCY:
When you are trying for a Chapter 7 bankruptcy, you start by filing a petition with the bankruptcy court serving your area. In addition to the petition, you must also file:
- Schedules of assets and liabilities
- Schedule of current monthly income and expenditures
- Statement of financial affairs
- Schedule of executory contracts and unexpired leases
While a husband and wife may file jointly or individually, they must adhere to all the document filing requirements of individual debtors.
After the petition is filed, the trustee holds a “meeting of creditors.” During this meeting, you are put under oath and both the trustee and your creditors may ask questions.
If successful, the Federal Rules of Bankruptcy Procedure has the clerk of the bankruptcy court mail a copy of the discharge to all creditors, to you, and your attorney if you have one. This notice informs your creditors that the debts owed to them have been discharged and that any further collection activity is not permitted.
To offer you the best chance at success, a bankruptcy attorney is very helpful. Courtney Durham’s over 20 years of expertise can help you get your fresh start that offers you a future free from overwhelming debt. She can also help you determine if you are eligible for Chapter 7 bankruptcy, and provide you with alternative solutions.
What is Chapter 11 Bankruptcy?
Chapter 11 involves a reorganization of a debtor’s business affairs, debts, and assets. It’s often known as a “reorganization” in bankruptcy terms. Most often, it is used by businesses, though it is available to individuals as well.
REQUIREMENTS FOR CHAPTER 11 REORGANIZATION:
There are a few requirements to qualify for Chapter 11 bankruptcy. These include:
- If you are an individual debtor with primarily consumer debts, you must complete a credit counseling course with an approved agency. This must be done within 180 days of filing and you must present a certificate of completion.
- You cannot file under Chapter 11 (or any other Chapter) within 180 days if a prior bankruptcy petition was dismissed due to your failure to appear at the court or comply with orders of the court, or was voluntarily dismissed after you sought relief from the bankruptcy court to recover property upon which you hold liens.
THE PROCESS FOR OBTAINING CHAPTER 11 BANKRUPTCY:
When you are trying for a Chapter 11 reorganization, you start by filing a petition with the bankruptcy court serving your area. In addition to the petition, you must also file:
- Schedules of assets and liabilities
- Schedule of current monthly income and expenditures
- Statement of financial affairs
- Schedule of executory contracts and unexpired leases
Once the petition is filed, the creditors are temporarily prohibited from taking any action. You have four months to create a reorganization plan. This could be extended to 18 months. After that, the creditors can propose their reorganization plans. These plans can include some downsizing to reduce expenses and free up assets.
Once your plan is filed, the creditors vote whether or not to accept it. Usually, they will accept it as the next option is usually Chapter 7, in which case, they get little to nothing. If the plan is rejected, you can ask for a “cram down,” which is where you ask a judge to force the creditors to accept it. There is no time limit on completing the repayment plan.
For the best plans and success in filing a Chapter 11 bankruptcy, call Courtney D. Durham. She has 20 years of experience in bankruptcy law and can help you get the best solutions available to you for yourself or your business.
What is Chapter 13 Bankruptcy?
Like Chapter 11, this form of bankruptcy is also a reorganization. The Chapter 13 bankruptcy is also known as the “Wage-Earner’s Plan.” The main difference between Chapter 13 and Chapter 11 bankruptcy is that Chapter 13 is reserved for individuals who have stable incomes, while also having specific debt limits.
REQUIREMENTS FOR CHAPTER 13 BANKRUPTCY:
There are a few requirements to qualify for Chapter 13 bankruptcy. These include:
- Unsecured debts must be less than $394,725 and secured debts must be less than $1,184,200
- Must attend two credit courses. The first must be completed within 180 days upon filing for bankruptcy. The second may be required after your case has been filed.
- Must demonstrate a steady income.
THE PROCESS FOR OBTAINING CHAPTER 13 BANKRUPTCY:
When you are trying for a Chapter 13 bankruptcy, you start by filing a petition with the bankruptcy court serving your area. In addition to the petition, you must also file:
- Schedules of assets and liabilities
- Schedule of current monthly income and expenditures
- Statement of financial affairs
- Schedule of executory contracts and unexpired leases
- Plan to repay outstanding creditors within 3-5 years
Once the petition is filed, the creditors are temporarily prohibited from taking any action. While creditors have the right to object to the proposed payment plan, if it allocates funds following bankruptcy law, the judge is required to approve it despite the creditor’s objections. A bankruptcy lawyer versed in overcoming creditors’ objects is very valuable in this stage.
If your plan is approved, and you make the payments and satisfy other requirements, you will be entitled to a discharge. A discharge is a permanent court order that releases you from the personal liability of the debt. This also prohibits the creditor from taking further collection action against you.
Courtney Durham is well-versed in overcoming creditors’ objections and can ensure your repayment plan is in accordance with bankruptcy law, is feasible, and is performed in good faith.
