Chapter 7

A bankruptcy case filed under Chapter 7 of the Bankruptcy Code allows for the orderly administration of debts and assets, so you can get your finances under control and your life back in order. Chapter 7 is available to both individuals and business, subject to certain eligibility requirements. In a Chapter 7 bankruptcy case, a bankruptcy trustee collects nonexempt assets, if any, and distributes the proceeds realized from those assets to creditors. For individuals, Chapter 7 also provides for the discharge of debts, meaning creditors can never again seek to collect debts discharged through the bankruptcy. For businesses, Chapter 7 may provide a cost effective way to wind up a failed business. 

Chapter 7 is not appropriate for all situations, and an attorney should be consulted prior to seeking relief under Chapter 7. Contact Andersen Law Firm now to schedule a free consultation and see if Chapter 7 makes sense for you.

Chapter 11

Chapter 11 of the Bankruptcy Code allows both business and individuals to reorganize assets and debts through a plan of reorganization. For businesses, Chapter 11 provides powerful tools to restructure contacts, negotiate with lenders, and emerge from bankruptcy positioned for future success. For certain individuals with very high debts and with assets with which to reorganize, Chapter 11 allows these individuals to take advantage of the same tools available to businesses and receive a discharge of their debts while reorganizing their financial lives. In appropriate situations, Chapter 11 can even allow for an orderly liquidation controlled by you instead of a bankruptcy trustee. 
 
Chapter 11 provides powerful tools for businesses and individuals to restructure their finances and make a fresh start. However, bankruptcy under Chapter 11 is a complicated process and requires the assistance of an experienced and competent bankruptcy attorney. Contact Andersen Law Firm today to discuss whether Chapter 11 is in either your or your business's best interest.

 

Chapter 13

Chapter 13 is designed for individuals who have regular income and provides these individuals the opportunity to pay creditors over time while readjusting their debts. Chapter 13 also allows individuals facing foreclosure the opportunity to save their homes by stopping the foreclosure and curing past defaults over time. Individuals in Chapter 13 must commit to make minimum payments to creditors for a period of three to five years. At the end of this repayment period, a Chapter 13 discharge may be granted, which provides a discharge of debts even broader than the discharge provided by Chapter 7.  

Chapter 13 is only available to certain eligible individuals, and the Chapter 13 repayment plan must be formulated with care, as the repayment period lasts several years. Contact Andersen Law Firm to discuss whether a Chapter 13 bankruptcy makes sense for your unique situation. 

Petition & Schedules

The bankruptcy petition is the document filed with the Bankruptcy Court to commence your bankruptcy case. The bankruptcy schedules and statements are typically filed with the Bankruptcy Court at the same time as the petition and contain required disclosures regarding assets, debts, and previous financial transactions. All of these documents are signed under penalty of perjury, and, therefore, ensuring these documents are complete and accurate is of the utmost importance. The failure to provide accurate financial information can have serious consequences.

Only through consultation with an experienced bankruptcy attorney can you ensure the petitions and schedules you file with the Bankruptcy Court are complete and accurate. Contact Andersen Law Firm for your free consultation today.

 

Automatic Stay

Once a bankruptcy case is filed, the Bankruptcy Code provides for an automatic stay, subject to certain exceptions. This automatic stay prohibits creditors from taking any action to enforce debts being dealt with in the bankruptcy case. Creditors who seek to collect debts in the face of the automatic stay can be held in contempt of court and can be liable for damages, including punitive damages. Before seeking to enforce a debt that is part of bankruptcy case, a creditor must first obtain relief from the automatic stay, and this relief is only available in certain circumstances.

Contact Andersen Law Firm and schedule your free consultation today if you have questions about bankruptcy and the automatic stay. 

Discharge

One of the most important benefits of bankruptcy is the discharge, and the discharge is the end-goal for almost all individual bankruptcy cases and many business bankruptcy cases. The bankruptcy discharge is a release from personal liability for certain specified debts and operates as a permanent injunction that prohibits your creditors from ever seeking to collect those debts. A creditor who violates the discharge may face serious consequences. However, the bankruptcy discharge does not remove valid liens against property, and a creditor with a valid lien can seek to foreclose on such property even though a bankruptcy discharge has been entered.

Contact Andersen Law Firm if you have questions about the bankruptcy discharge or if you think your discharge has been violated.