Bankruptcy provides individuals and businesses with an opportunity to recover from a difficult situation and move forward with their life or business.  It is a situation where we can act as a creative advocate to make a positive impact.

    We have been designated as a Federal Debt Relief Agency by the Bankruptcy Act of 2005.  We handle cases filed under chapter 7, chapter 13, and chapter 11


CHAPTER 7

    Chapter 7 is a liquidation proceeding.  It provides individuals with a fresh start.  The individuals retain all exempt  property.  In many cases, all the individuals’ assets are exempt and can be retained.  Steps can be taken for individuals to retain possession of certain secured property, such as motor vehicles and their primary residence.  While the case is pending, creditors are prohibited from taking any action to collect their debts or seize property of the individuals in satisfaction of their claims.  A wide variety of debts are discharged by means of a Chapter 7 proceeding.  There are special procedures for stockbrokers and commodity brokers.


CHAPTER 13

    Chapter 13 is a repayment plan for individuals.  Chapter 13 provides an opportunity for individuals with regular income to adjust their relationships with their creditors while retaining all of their property.  Moreover, the individuals are afforded the protection of the bankruptcy court during the period that they are repaying their debts pursuant either to a composition or an extension plan.  In the meantime, creditors are prohibited from taking any action to collect their debts or seize property of the individuals in satisfaction of their claims.  Furthermore, creditors may not seek to collect their claims from codebtors.  In addition, individuals may obtain an discharge of a broader variety of debts than they could under Chapter 7.


CHAPTER 11

    Chapter 11 is a business reorganization.  The business does not surrender its assets or cease operation but attempts to work out an agreement with creditors and interest holders to remain in business.  Generally, it is expected that the business will work out an extension of time to pay in full, enter into an agreement for part payment termed a composition, or a combination of both.  Liquidation is possible, but under this chapter it is a slow and careful liquidation as opposed to the relatively rapid liquidation under Chapter 7.

    For individuals who do not want to file a Chapter 7 liquidation case but whose debts exceed the limits for a Chapter 13 repayment case, said individuals must file under Chapter 11.  As a debtor in possession, the individual remains in control of his or her assets and can propose a plan that repays creditors over time.