Blogs

Many clients that I meet with regarding bankruptcy ask me “What is a Chapter 11 bankruptcy case?”   A Chapter 11 bankruptcy allows an individual or a business to reorganize debts while being protected from creditors.

The answer is usually no.  The amount that each debt is paid is determined on a case by case basis and in some circumstances, certain debts are not paid back at all. Instead, these debts are discharged upon completion of the case. There are many different factors that go into determining what debts must be paid. Let’s go over a few.

There are many things you can do to help your Bankruptcy attorney assist you in achieving a successful case. First and foremost, answer all of your attorney’s questions honestly. If you are not forthright with your attorney they cannot help you make the best decisions to obtain future financial freedom.

When most people think of bankruptcy, negative thoughts often come to mind.

The Fair Debt Collection Practices Act is a federal law which proscribes and restricts a number of actions that debt collectors, collection agencies and lawyers can take if they are pursuing you on a debt. Debt collectors, collection agencies and lawyers are not allowed to harass you or abuse you in trying to collect a debt.

A bankruptcy discharge releases the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer legally required to pay any debts that are discharged.

Do I owe enough to file for bankruptcy is a question that I and my colleagues hear quite often. My initial response is the amount of debt you owe is relative to your financial situation. Many people feel overwhelmed by debt but are concerned that they don’t owe enough to consider bankruptcy as an option.

Chapter 7 bankruptcy, often referred to as “straight bankruptcy”, is a proceeding through which an honest debtor can discharge most if not all of her debt.  Although technically the bankruptcy code allows a trustee to liquidate (sell) some of the debtor’s assets and divide the proceeds amongst his creditors, in reality this very seldom happens.

Child support, and domestic support obligations in general, are non-dischargeable. However, that does not mean that there is no relief to be had if you are experiencing financial difficulty. Child support obligations can be made easier to manage through a chapter 13 personal reorganization.