A Fresh Start

• Stop: Creditor Harassment, Wage Garnishment, Judgments

• Protect: Your Home, Your Automobile, Your Property

I represent Debtors and Creditors in Chapters 7, 11, and 13 bankruptcy filings and various adversary actions or motions that may come up in a bankruptcy proceeding. These types can be described as follows:

• Chapter 7
  Chapter 7 is designed for people or businesses who cannot pay their debts. Under Chapter 7, most people can keep their home, automobile, retirement benefits and other property, with certain limitations. 
  
  The legislature has provided two sets of exemptions which detail specifically what property a Chapter 7 Debtor can keep. There are no exemptions for partnerships, corporations or limited liability companies. 
  
  Most debts can be discharged. The most common exceptions to discharge are most taxes, most educational loans, secured interests, criminal restitution, alimony and child support, and personal injury due to drunk driving. Under a Chapter 7, if the Debtor has property which is not exempt, the Trustee will sell the property to pay off the creditors. A Chapter 7 generally lasts about four months, from filing to discharge. 
  
  If the Debtor does not want any property sold by the Trustee and has regular income, the Debtor can probably save the property by filing a Chapter 13, instead of a Chapter 7. Additionally, if the Debtor is behind in a house payment, car payment or other secured debt, a Chapter 13 may be filed to save those properties.

• Chapter 13
  Generally, Chapter 13 creates an avenue for people or businesses who have unsecured debts of less than $250,000.00, regular income, and secured debts of less than $750,000.00 and are not a corporation, partnership or limited liability company. Debtors under a Chapter 13 pay their outstanding debts over a three to five year period of time and keep all of their property, both exempt and non-exempt. Thus, if the Debtor is behind in a house payment, car payment or other secured debt, has tax debts which cannot be paid, a plan for repayment of these debts can be created. 
  
  The Debtor typically must pay 100% of secured debts, but may only be required to pay a small portion of or even none of the unsecured debts. After completion of payments under the Chapter 13 Plan the Debtor will be discharged from all of debts, with the exception of certain debts, most common of which are: student loans, criminal fines and restitution, debts for death or personal injury caused by driving under the influence and secured obligations. If the debts exceed the Chapter 13 limitations or Debtor is a corporation, partnership or limited liability company, a Chapter 11 may be preferable.

• Chapter 11
  Chapter 11 is designed for a person or a business who wishes to reorganize while obtaining protection from creditors. Legally, anyone except a governmental agency, an estate, a non-business trust, a stockbroker, a commodity broker, an insurance company, a bank, or an SBA-licensed small business investment company may file under Chapter 11.
  
  A Chapter 11 may also be used for an orderly liquidation, rather than a reorganization, giving the Debtor control over how the business is liquidated. 
  
  There are no debt limitations in Chapter 11 and the plan of reorganization may generally be as long as necessary to reorganize or liquidate.

• Creditors
  A creditor is any entity that has a claim against the Debtor that arose at the time of, or before, the filing of the bankruptcy of the Debtor. A claim is a right to payment or a right to an equitable remedy for breach of performance if this gives rise to a right of payment. Creditors, depending upon what type of claim they hold, stand in different positions with respect to their priority of payment under the bankruptcy code.
  
  There are many bases upon which Creditors may object to the discharge or payment plan provided for by the Debtors. Creditors should seek legal counsel to determine what rights and remedies may be available to them given their particular situation.