Header - Bankruptcy

Bankruptcy law allows a debtor, who is unable to pay his creditors, to be able to get out of his financial troubles by filing for bankruptcy. In various cases, you may be able to keep all your property  and discharge all your debts in a bankruptcy. However, in some cases you may have to divide your assets, if they are not exempt, in order to pay your creditors in the bankruptcy. if you operate a business certain bankruptcy proceedings allow a debtor to stay in business and use revenue generated to resolve his or her debts; this is also referred to as a reaffirmation or reorganization of debts.

You should know that Bankruptcy law is federal statutory law contained in Title 11 of the United States Code. Bankruptcy is within your legal right. In fact, Congress passed the Bankruptcy Code under its Constitutional grant of authority to “establish… uniform laws on the subject of Bankruptcy throughout the United States.” See U.S. Constitution Article I, Section 8. Since bankruptcy is a Federal right States may not regulate bankruptcy and therefore you are given the opportunity to file for bankruptcy and obtain a fresh new start to a brighter future.

Bankruptcy proceedings are supervised by and litigated in the United States Bankruptcy court. These courts are a part of the District Courts of The United States. Upon filing bankruptcy a Trustee will be assigned to your case. A Trustee handles many supervisory and administrative duties of the bankruptcy and in essence, oversees all your assets and debts.

There are two basic types of Bankruptcy proceedings. A filing under a Chapter 7 bankruptcy, which is also known as liquidation, will usually allow a debtor to discharge all of their debt without losing any of their exempt assets and property. This means you can keep any credit card you choose to, your house, cars and other various properties so long as the properties meet the exemptions allowed by the bankruptcy code. Chapter 7 bankruptcy is the most common type of bankruptcy proceeding. Liquidation bankruptcy involves the appointment of a trustee who collects the non-exempt property of the debtor, sells it and distributes the proceeds to the creditors unless they are exempt. Bankruptcy proceedings under Chapters 11 and 13 involve the rehabilitation of the debtor to allow them to use future earnings to pay off creditors. Under Chapter 7, 13, and some 11 proceedings, a trustee is appointed to supervise the assets of the debtor. A bankruptcy proceeding can either be entered into voluntarily by a debtor or initiated by creditors. After a bankruptcy proceeding is filed, creditors, for the most part, may not seek to collect their debts outside of the proceeding. In addition, every debtor should know that you are not allowed to use your credit cards during a bankruptcy proceeding nor are you allowed to use your credit cards 30 days prior to filing for bankruptcy. Moreover, the debtor is not allowed to transfer property that has been declared part of the estate subject to proceedings. Furthermore, certain pre-proceeding transfers of property, secured interests, and liens may be delayed or invalidated. Various provisions of the Bankruptcy Code also establish the priority of creditors’ interests.

Each individual case is different and assumptions should not be made regarding which bankruptcy chapter is right for you. Give us a call to discuss your bankruptcy options and to see whether bankruptcy will benefit you. We won’t just say “yes, you should file,” we will evaluate your case and let you know if it’s worth filing for bankruptcy and provide you with adequate reasons as to why you should file.

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    I have been a client for a few years now. I was a victim of a DUI accident and suffered both financially and physically. I was referred here by a good friend and had an amazing experience. Panel of paralegals has the most knowledgeable personnel and they handled my case in a very timely manner and fought with the insurance company to get me a fair settlement. I strongly recommend their services, they’re affordable, reliable and very professional.

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