|
Chapter 7--Straight Bankruptcy. Chapter 7 is a relatively inexpensive and brief legal proceeding, the purpose of which is to eliminate most debts, and provide the petitioner, or "Debtor," a debt free "fresh start." The case begins by filing the bankruptcy petition. Schedules attached to the petition must fully disclose information regarding the Debtor's assets, debts, income and expenses. The Debtor must appear for one hearing, referred to as the "meeting of creditors." This hearing is conducted by the case administrator, also referred to as the Bankruptcy Trustee, about a month after the case is filed. The Debtor's property or assets are normally protected by applicable exemption laws. The Debtor will be released from most debts, assuming there has been proper notice given to the creditor. Some debts, such as recent tax liabilities, child support or alimony obligations, and government insured student loans, and criminal fines or penalties, are not dischargeable in bankruptcy. The majority of consumer Chapter 7 cases are uncontested, and conclude with the Court issuing an order of discharge. The discharge order is a permanent and final injunction against creditors of the bankrupt. A Chapter 7 discharge for the individual is available not more than once every six years, under the current law. For Additional Information Please See the FAQ Page at this Site. |
|
Home Page | Attorney Profile | F A Q s | Published Opinions | Chapter 7 .. Chapter 13 | Attorney Fees .. Court Costs | Bankruptcy Links | Place An Order |
|
Chapter 13 --- Individual Debt Adjustment. Preparation and filing of a Chapter 13 petition and schedules is identical to the Chapter 7 case process. However, the Chapter 13 Debtor must also file a "Plan" for repaying some or all of the Debtor's obligations. Chapter 13 bankruptcy, also referred to as "debt consolidation," or "individual debt adjustment," is available only to individual or married persons with regular income, and whose total liabilities are capped at $250,000 for unsecured debt, and $750,000 secured debt. Chapter 13 is typically used to restructure debt payments within the Debtor's means. The Plan is the centerpiece of the Chapter 13 case. It is a written proposal that may create classes of creditors and propose a stream of payments over a period of 36 to 60 month term. This is typically accomplished by a entering a court ordered voluntary wage assignment sending money from the Debtor's employer to the Bankruptcy Trustee. In preparing the Plan, the Debtor must carefully consider and project reasonable living expenses, so as to determine how much the Debtor can pay on a periodic basis. Ultimately, the Plan is "confirmed" by the Court, and the Plan becomes a federal court order binding the Debtor and creditors. Upon successful completion of the payment plan, the Debtor is granted a discharge from all debts that are dischargeable under Chapter 13, and which have not been paid under the confirmed Plan. For Additional Information Please See the FAQ Page at this Site. |
|
Telephone no. 405.447.2521 Toll Free no. 800.305.2521 Facsimile no. 405.447.2552 |
|
CONTACT US: |