​​

BANKRUPTCY

 

The United States Constitution, Article I, Section 8 allows for Congress to enact laws on bankruptcy which will allow for an honest debtor to be given a second chance and a fresh start to their lives by eliminating certain debt while allowing individuals to keep certain possessions.

The Supreme Court of the United States has stated that bankruptcy “gives the honest, but unfortunate debtor ... a new opportunity in life and a clear field for future effort, unhampered by the pressure and discouragement of preexisting debt.”


There are numerous “Chapters” that  can be recommend for a bankruptcy filing. Those Chapters include:

Chapter 7 - Liquidation
Chapter 11 - Reorganization
Chapter 12 - Family Farmer or Fisherman
Chapter 13 - Consumer Wage Earner

​BENEFITS OF BANKRUPTCY

​

Provides a “Fresh Start” for a person in financial distress.

Eliminates numerous, potentially overwhelming bills such as doctor bills, hospital bills, unsecured personal loans, business debts, and credit card debts.

May be able to eliminate old tax liabilities.

Eliminates judgments and garnishments.

Eliminates deficiencies owed to banks from short sales or mortgage deficiencies from foreclosure.

Eliminates deficiencies owed as a result of repossession of a car, boat or other item.

Stops a foreclosure of a house or a foreclosure sale.  Depending on the situation, this halt may not be permanent.

Stops creditor lawsuits filed against you.

Stops the repossession of items such as cars, boats, or other items from banks and creditors.

​

​

CHAPTER 7 LIQUIDATION

​

Chapter 7 Bankruptcy was created so that the honest debtor can get a fresh start.

A Chapter 7 Bankruptcy will allow you to wipe clean most of your unsecured debts including doctors bills, hospital bills, judgments, old taxes, and credit card debts while being able to keep certain assets. Many people are able to keep all of their assets including their house, car and retirement accounts.

When a person files for bankruptcy, creditors and bill collectors must cease calling them, or contacting them in any way, in their effort to collect on the debts owed.  A Chapter 7 Bankruptcy will also put an end to wage garnishments and all lawsuits filed by creditors.

A Chapter 7 Bankruptcy can take as little as six months from start to finish. Once the Bankruptcy Court Judge grants you a bankruptcy discharge, you will no longer be legally responsible for the discharged debts.

Certain restrictions apply to Chapter 7 Bankruptcies.

 

​

​