Navigating The Bankruptcy Maze
At Kaufman, Englett and Lynd, PLLC (KEL Attorneys), each bankruptcy attorney we employ understands that times are tough for everyone and have been for a few years now. More and more people are finding themselves in dire financial situations which seem to have no end and no solution. Be it because of unexpected medical bills, a family emergency, or a sudden layoff from work, you may be considering bankruptcy as an option to those ever-increasing credit card balances, bottomless pit of bill statements, and continual creditor phone calls. If you feel you are in over your head and there is no way out, let a KEL Attorneys' bankruptcy attorney help you! Each KEL Attorneys' bankruptcy attorney understands your situation and is ready to champion your case! We have been serving our bankruptcy clients' needs for over a decade and are ready to assist with your Chapter 7 bankruptcy, Chapter 11 bankruptcy, or Chapter 13 bankruptcy needs!
So, What Is Bankruptcy? And, Do I Need A Bankruptcy Attorney?
Bankruptcy is a legal process whereby an individual or business attempts to either eliminate debt or reorganize their debt so they may move forward with a "fresh start." Through this process, a KEL Attorneys' bankruptcy lawyer may be able to help you stop foreclosures and repossessions, stop harassing creditor phone calls, stop creditor lawsuits, and eliminate debt.
There are several bankruptcy chapters which may be filed; however, Chapter 7, Chapter 11, and Chapter 13 are the most common. Which of these bankruptcy chapters you may be qualified to file depends upon many different criteria, such as are you filing as an individual or a business, is your goal to eliminate debt or reorganize your debt, and do you have the ability to pay back your creditors. A KEL Attorneys' bankruptcy attorney can help you determine answers to these necessary questions.
The Bankruptcy Code does not require that you retain a bankruptcy lawyer to represent you. However, it should be noted that the Bankruptcy Code, which is federal law, is very intricate and contains many nuances that a novice could find overwhelming, complicated, and tiresome. Additionally, it is best to have a bankruptcy lawyer with you when you attend the Creditors' Meeting, where the bankruptcy trustee will question you about several different things. To learn more about the bankruptcy process, representation by a KEL Attorneys' bankruptcy attorney, or to take your first step toward a debt-free life, complete our online form to the right.
Bankruptcy For Individuals - Chapter 7 Bankruptcy And Chapter 13 Bankruptcy
When someone needs to declare bankruptcy (known as Consumer Bankruptcy), the prevalent options are Chapter 7 bankruptcy and Chapter 13 bankruptcy. An individual's circumstances will determine which chapter of bankruptcy, Chapter 7 bankruptcy or Chapter 13 bankruptcy, they will quality for and may be filed.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy, which normally takes four to six months to complete, allows a person to "start fresh" by eliminating most, and possibly all, debt. Chapter 7 bankruptcy is thought to be the most favorable chapter to file because at the end of the Chapter 7 bankruptcy you will likely receive a "discharge" of all your qualifying debt. This means you will be able to walk away from the Chapter 7 bankruptcy with relatively no debt! With an experienced KEL Attorneys' bankruptcy lawyer, Chapter 7 bankruptcy is really an easy and quick solution to end financial hardship for you and your family. If you are interested in speaking to a bankruptcy lawyer about your situation, just complete the online form to the right.
Types of debt which may be eliminated through discharge include:
- Foreclosures
- Repossessions
- Medical Bills
- Credit Card Debt
- PayDay Loans
- Parking Tickets
In most cases, Chapter 7 bankruptcy is a good choice for people who fit the following model:
- People Who Have Excessive Debt That Is Beyond Their Ability To Pay
- People Who Do Not Possess Much Equity In Real Property Or Other Personal Assets
- People Who Are Confined By Income Restraints.
To qualify for Chapter 7 bankruptcy, a bankruptcy lawyer will need to calculate a "mean's test." The mean's test is required in order to determine the person's ability, or lack thereof, to pay back existing creditor's. A seasoned KEL Attorneys' bankruptcy attorney can review your financial situation and determine if you will be able to file a Chapter 7 bankruptcy.
There are certain debts which will not be discharged through Chapter 7 bankruptcy. These debts include:
- Child Support
- Tax Debt
- Student Loans
- Debts Accrued By Fraud Or Malicious Acts
Bankruptcy For Businesses - Chapter 7 Bankruptcy, Chapter 11 Bankruptcy, And Chapter 13 Bankruptcy
Certain business entities, such as corporations, limited liability companies, and partnerships, are considered as being separate from the owner(s), in a legal sense. Because of this, these legal entities may file Chapter 7 bankruptcy or Chapter 11 bankruptcy separately from the owner(s). However, sole proprietorships do not fit this category of legal entity so the proprietor must file bankruptcy as an individual. Therefore, Chapter 7 bankruptcy, Chapter 11 bankruptcy, and Chapter 13 bankruptcy may be filed. A bankruptcy attorney employed at KEL Attorneys can determine which bankruptcy chapter you will be qualified to file.
Chapter 7 Bankruptcy
When Chapter 7 bankruptcy is filed for a legal entity, the company's assets will be liquidated and the proceeds of the liquidation will be distributed to the creditors. For a business bankruptcy, Chapter 7 bankruptcy is best utilized for a business that:
- Has Little To No Future
- Has No Significant Assets
- Has Debt That Is So Substantial That It Cannot Be Reorganized
Chapter 11 Bankruptcy
The alter ego to a business Chapter 7 bankruptcy, Chapter 11 bankruptcy may be filed when the business:
- Has A Chance For Survival
- Holds Assets That Are Significant
- Would Prefer To Avoid Liquidation
Where the liquidation of assets is the goal of a business Chapter 7 bankruptcy, reorganization of debt is the goal of a business Chapter 11 bankruptcy. With a Chapter 11 bankruptcy, in order to reorganize the company's debt, the company is restructured so current debt will be paid from future company earnings. If a Chapter 11 bankruptcy is filed, the company may request an adjustment to its debt. A seasoned bankruptcy attorney may accomplish this by eliminating some of the debt or by requesting an extension of time for repayment of the company's debt. A bankruptcy lawyer may also request a more extensive Chapter 11 bankruptcy plan of reorganization.
There are a few things to be aware of with regard to a business Chapter 11 bankruptcy. A Chapter 11 bankruptcy is time-intensive and is considerably more expensive. Also, because of these reasons, a Chapter 11 bankruptcy may wear on the company due to the added stress.
By retaining a KEL Attorneys' bankruptcy lawyer, you will gain an ally to help you through the bankruptcy process and a bankruptcy attorney who will tirelessly explain all of the ins-and-outs of Chapter 11 bankruptcy.
Chapter 13 Bankruptcy
A business Chapter 13 bankruptcy, which may be filed by sole proprietors, is advantageous in that the proprietor may retain the business by agreeing to a plan of reorganization. It will be necessary for the proprietor to repay all or a portion of the debt over a pre-determined time span, normally three to five years. Another high point with Chapter 13 bankruptcy is that the proprietor will stop foreclosure proceedings when his or her KEL Attorney's bankruptcy attorney files the Chapter 13 bankruptcy and may clear up any mortgage default brought on by missed payments. A Chapter 13 bankruptcy may be filed by any person or proprietor; however, certain requirements must be met.
A KEL Attorneys' bankruptcy attorney is ready to help you with your Chapter 13 bankruptcy matter. Call today or complete our online form to make contact with a KEL Attorneys' bankruptcy lawyer.
Let A KEL Attorneys' Bankruptcy Lawyer Help You To Gain Financial Freedom
Many people feel that bankruptcy is a "black mark" against them; however, as stated above, times are excessively tough right now and life really does happen!
At KEL Attorneys, we are devoted to and passionate about assisting people just like you to break free from their financial bondage so they can live the life they have always dreamed of! Debt-Free!
Call today to speak to a qualified KEL Attorneys' bankruptcy lawyer. We await your call so we can ascertain your financial situation and describe Chapter 7 bankruptcy, Chapter 11 bankruptcy, and Chapter 13 bankruptcy in more detail.