Bankruptcy is an orderly, court-supervised procedure in which the debts an individual or business has incurred are either renegotiated, partially paid or discharged. Many individual debtors qualify for bankruptcy protection without giving up any assets. Some debts, like student loans, are generally not dischargeable. The information below outlines the process, but you will want to discuss your particular situation with a bankruptcy attorney in order to determine whether bankruptcy is the appropriate relief for your situation.
In exchange for a full and fair disclosure of your assets, liabilities, income, and expenses, the debtor receives the discharge of certain debts. Bankruptcy requires complete disclosure — you cannot hide income or debt from the court.
“The principal purpose of the Bankruptcy Code is to grant a fresh start to the honest but unfortunate debtor.”
– Grogan v. Garner, 498 U. S. 279 (1991)
Chapter 7 (Liquidation)
In Chapter 7 cases, non-exempt assets are sold to pay creditors. In reality, many individual debtors have no assets that get sold. There are certain income requirements in order to qualify for a Chapter 7 case. Your bankruptcy attorney will help you evaluate your income and assets to determine if Chapter 7 bankruptcy is the right fit for you.
Chapter 13 (Reorganization)
In Chapter 13 cases, a debtor remits a manageable portion of their monthly income to a trustee who makes debt payments on the debtor’s behalf.
The JC Elgin Co., LPA Difference
There are so many ads offering discount bankruptcies. What makes our firm different is our commitment to education and client comfort. We ensure you understand what is happening or we don’t move forward. We utilize the latest technology to analyze your case, provide you documentation, and keep you informed of the status of your case. You need a partner in this process and you need to understand what is taking place – don’t just pay the cheapest preparer to generate documents.
If you are considering filing for bankruptcy, call us today for a free initial consultation to go over your unique situation.