Your visit to my office indicates an interest in finding a solution to your financial difficulties. Hopefully, by assisting you with filing a bankruptcy petition, we can provide you with relief from mounting debts. In order to do this to your best advantage, we need to provide you with some information, and we need to get some information from you.

First we must explain that there are several types of bankruptcies. Most clients, unless they are a corporation or have exceedingly high debts, file either a Chapter 7 or a Chapter 13. We will explain the Chapter 7 and Chapter 13 bankruptcies below.

Secondly, generally there are several types of debts - secured debts, priority debts, and unsecured debts. Secured debts are easily identified; all mortgages and vehicle loans are considered secured debt. Unsecured debts include credit card debts, department store charges, medical bills, personal loans, and miscellaneous unpaid bills. Security claims and liens may continue after a bankruptcy has been discharged. If you have a pending lawsuit, we recommend a bankruptcy be filed as soon as possible, to prevent the creditor from receiving a judgment and recording a lien. Please inform this office of any judgment liens or tax liens against your real property. Judgment liens and tax liens recorded against your real property are not automatically removed by filing a bankruptcy.

There are several differences between Chapter 7 and Chapter 13 bankruptcies. A Chapter 7 is called a "straight bankruptcy". In a Chapter 7, most unsecured debts are discharged. A Chapter 13 bankruptcy consists of a payment plan, of all debts, through which the debtor can pay back all or part of the unsecured debt. The debtor makes regular monthly payments to the bankruptcy trustee who in turn pays the creditors. It usually takes three to five years to complete a Chapter 13 payment plan. Secured debts are dealt with differently in a Chapter 13 bankruptcy proceeding than a Chapter 7 bankruptcy. If you have secured debts, student loans, back child/spousal support or taxes or if you have used your credit cards recently, including credit card balance transfers, a Chapter 13 bankruptcy may be more helpful to you. A tax refund may not be protected in a Chapter 7, especially if you own a home with equity.

Please contact me to discuss a brighter financial future.