Services
Chapter 7Often called the liquidation chapter, Chapter 7 is used by individuals, partnerships, or corporations that are facing difficult financial situations and have no hope of improving their situation.
A trustee is appointed to take over the property of the estate and administer the case. The vast majority of consumer Chapter 7 cases that are filed with the court, however, are no-asset cases, where the debtors are able to keep most of their personal assets and even some equity in a real estate depending on the applicable exemption law. *The information contained on this site is for general education only and it is not, nor is it meant to be, legal advice. You should seek advice from a bankruptcy attorney for your specific situation. |
Chapter 13Also called reorganization or payout bankruptcy for consumers, Chapter 13 bankruptcy filing allows individuals with stable source of income to propose a plan to repay a portion of their debts over three to five year period.
During this time a federal injunction known as "automatic stay" forbids creditors from starting or continuing collection efforts, including lawsuits. Upon completion of the plan payments, the debtor's personal liability for his or her pre-petition debts will be discharged (i.e. wiped out). *The information contained on this site is for general education only and it is not, nor is it meant to be, legal advice. You should seek advice from a bankruptcy attorney for your specific situation. |
Business/ CorporationBankruptcy for corporations or business involves most of the same Code sections and legal doctrines as individual bankruptcies, but there are some important distinctions.
For example, when a corporation files Chapter 7 bankruptcy, it does not receive a discharge of its debts, but instead it quietly expires under state corporate law following its financial demise in bankruptcy. There are no exemptions for corporate debtors and all assets of the corporation that are of substantial value may be liquidated to repay the creditors. Small business owners who are temporarily experiencing financial hardships but want to keep their business may file Chapter 13 bankruptcy to regain financial footing for the business. Small business bankruptcy filing under Chapter 13 has been our focus and strong practice since our opening in June 2009. *The information contained on this site is for general education only and it is not, nor is it meant to be, legal advice. You should seek advice from a bankruptcy attorney for your specific situation. |