What is the difference between Chapter 7 and Chapter 13?
In its simplest form, Chapter 7 says, "I can't pay anything to anyone." However, a Debtor is frequenlty permitted to keep all his or her assets.
Chapter 13 is a Plan to typically pay back creditors on a pro rata basis and to cure a default like a delinquent mortgage over time. A Plan can rely on a sale of property as well.
Can an individual file Chapter 11?
Yes, I have confirmed many individual Chapter 11 Plans helping small business owners save hundreds of thousands and often times millions of dollars.
What is a Discharge?
A Discharge is typically one of the final orders of a bankrutcy case. It powerfully serves a permanent injunction against creditors, prohibiting them from ever pursuing the Debtor for any monetary recovery.
Can I include taxes in a Bankruptcy?
Yes. However, the years in which the tax debt was assessed and the years of the tax filing are crucial to analyze whether or not the taxes are dischargeable and whether or not, in a Chapter 13 Plan, the taxes are afforded priority status.
I am a small business owner and my income fluctuates. How do I know if I qualify?
It is important to sit with an experienced bankruptcy attorney who can fully understand your finances to properly advise on the prudence of filing and the timing to account for fluctuations.
What are some drawbacks in filing bankruptcy?
The main drawback seems to that a Debtor's credit score will be temporarily impacted. Almost universally in my experience, however, Debtors report that they wished they had filed their case long before and that they suffered too long out of a sense of shame.
Should I consider consolidating my debts before filing bankruptcy?
Beware of companies that promise consolidation. I have many clients report to me that they thought money being sent to was going to pay creditors, later to learn that the money went to pay the consolidation company first. Most often, clients beleive they have been scammed and wished they had hired me first.