Bankruptcy Basics

In a bankruptcy filing, a case may be filed under four different chapters, each of which serves a specific purpose as follows:

Chapter 7

In a chapter 7 filing, a Trustee is appointed to look into your tiling and to make sure that creditors are properly represented. In the usual case, individuals retain all of their property, utilizing exemptions that arc allowed under the bankruptcy law. The decision to tile a chapter 7 will depend on each specific case, and depends on the value of the assets owned, the equity in such assets, the size and nature of the debts owed to creditors, and the normal income and expenses of the individuals filing.

Chapter 13

Again, a Trustee is appointed under this chapter, and the people filing must earn wages or have some other source of regular income and must agree to pay part of the same for the benefit of their creditors. The filers propose a plan for repayment that will fit within their budget which must be approved by the Court and the Trustee, and the Trustee collects the payments and distributes the same to the creditors in accordance to the terms of the plan. This chapter is utilized in many cases to save homes that are in foreclosure, and to resolve other problems that can arise.

Chapter 12

This chapter is like a chapter 13, but is only available for family fanners, which term is defined under the bankruptcy code.

Chapter 11

This chapter is used mostly by businesses. Generally, the business continues to operate with the business proposing a plan for a repayment of part or all of its debts which must be approved by the Court. Generally there is no Trustee appointed.

The procedure we use in working with you is for you to request and for us to furnish you with a questionnaire and a form indicating the information that we will need in order to do a thorough analysis of your facts and situation. When you have completed that, we request that you submit the same to us so that Dave can review it and then that way give you the best possible advice when he meets with you on your no obligation, no cost initial meeting. The questionnaire can be requested by contacting us and requesting that the questionnaire be furnished to you either by e-mail or by regular mail.