Bankruptcy

     Are you overwhelmed with debt? It is quite possible that bankruptcy may be your best solution. We can assist you in determining which form of bankruptcy would be best for your situation.

     The first form of bankruptcy is a Chapter 7 Bankruptcy. In a Chapter 7 Bankruptcy, a trustee is appointed to take over your property. Any property of value will be sold or turned into money to pay your creditors. There are certain exemptions that you may claim against some of your property. In addition, you may choose to reaffirm certain debts. By reaffirming the debt, you will continue to be responsible for the payment and will be able to keep the security.

     The second form of bankruptcy is a Chapter 13 Bankruptcy. You can usually keep your property, but you must earn wages or have some other source of regular income. You must agree to pay part of your income to your creditors. The Court must approve your repayment plan and your budget. A trustee is appointed and will collect the payments from you, pay your creditors, and make sure you live up to the terms of your repayment plan.

The third form of bankruptcy is a Chapter 12 Bankruptcy. This form of bankruptcy is like a Chapter 13, but it is only for family farmers.

     The fourth form of bankruptcy is a Chapter 11 Bankruptcy. This is used mostly by businesses. In chapter 11, you may continue to operate your business, but your creditors and the Court must approve a plan to repay your debts. There is no trustee unless the Judge decides that one is necessary; if a trustee is appointed, the trustee takes control of your business and property.

     If you decide that bankruptcy is the best option, your bankruptcy may be reported on your credit record for as long as ten years. It can affect your ability to receive credit in the future.

     In order to file bankruptcy, you will need to gather up several documents including pay stubs, income tax returns and household expenses. For a complete list, please click on the link “Document List.”

     In addition to gathering your documentation, you will need to complete an approved credit counseling course. For a list of approved courses, please clink on the link “Credit Counseling Courses.”

FORMS

BANKRUPTCY INTAKE FORM

DISCLOSURE FORM