Bankruptcy
We Help You Find Relief

Free Case Evaluation

Chapter 7 Filings

When people face significant financial difficulties, they often are not sure where to turn for help. The bankruptcy laws in the United States provide options for those who need them. One of those options involves the filing for bankruptcy protection under Chapter 7 of the United States Bankruptcy Code.

When someone files for protection under Chapter 7 of the United States Bankruptcy Code, it’s said that he or she is filing a ‘liquidation’ bankruptcy. In a consumer Chapter 7, all debtors seek the basic goals of debtor relief. One goal is to be able to claim all, or substantially all, of the debtor’s assets as exempt and therefore free from the reach of creditors or the trustee. In plain English, the debtor gets to keep exempt property. Second, debtors seek to obtain a discharge of their debt and the creditors’ claims subject to the proceeding. A discharge is the term used to describe the release from debt that a debtor receives in a bankruptcy proceeding. A debtor achieving the two goals of exempting property and obtaining a discharge receives the fundamental debtor relief provided by the Bankruptcy Code.

The most immediate benefit that a debtor will experience when he or she files a Chapter 7 bankruptcy is when the court receives the petition and the proper documentation and issues what’s known as an Automatic Stay. This Automatic Stay is a statutory bar to the conducting of any collection activities by creditors after a bankruptcy petition has been filed. Furthermore, all litigation involving the debtor as a defendant is immediately stayed. Moreover, all foreclosures and repossessions are also stayed. The harassing phone calls and letters will immediately stop. This occurs at the moment a bankruptcy proceeding is filed.

After the process is complete and the bankruptcy case is closed, the court will discharge the debts that remain after the debtor’s assets are liquidated, except for the statutory exemptions that cannot be liquidated in the interests of a basic standard of living for the debtor. The discharge legally relieves a debtor of all dischargeable obligations. In essence, a debtor gets a fresh start and can begin rebuilding their credit.

Chapter 13 Bankruptcy

When people are earning income, but for many reasons are simply unable to keep up with their financial obligations, most feel as though there is nothing they can do but continue to suffer through the stress and anxiety that dominates every aspect of their lives. Fortunately, there are options for people in this situation, and one such option is filing a Chapter 13 bankruptcy case.

A Chapter 13 bankruptcy case is generally known as a ‘reorganization’ bankruptcy because it’s generally the type of relief that’s chosen by those debtors who earn income, but cannot keep up with their financial obligations.

A qualified individual may attempt to repay his or her debts through a Chapter 13 plan over a period of time, not to exceed five years. If the plan is successfully performed, the Chapter 13 debtor will be able to retain non-exempt assets and receive a discharge. Debtors typically file a Chapter 13 case to protect their homes from foreclosure or their cars from repossession because the Chapter 13 process provides them with an opportunity to cure the defaults on their secured debt in a manner that has potentially less onerous effect on their ability to obtain new credit.

There are many advantages to choosing a Chapter 13 bankruptcy. First and foremost, the debtor will not have to liquidate his or her assets under this chapter, which means that all of the things that the debtor has worked so hard to obtain will not be lost. Chapter 13 has the added benefit of extending the automatic stay to a co-debtor of a consumer debtor who has not also filed a bankruptcy proceeding. Additionally, if a Chapter 13 debtor is engaged in business, the debtor is permitted to continue to operate the business the business and is given the right to use, sell, and lease property of the estate pursuant to Section 363 or to incur credit pursuant to Section 364.

After the process is complete and the bankruptcy case is closed, the court will discharge the debts that remain after the debtor’s assets are liquidated, except for the statutory exemptions that cannot be liquidated in the interests of a basic standard of living for the debtor. The discharge legally relieves a debtor of all dischargeable obligations. In essence, a debtor gets a fresh start and can begin rebuilding their credit.

If you are experiencing financial hardship and are unable to pay your debts, please contact The Law Office of Harris J. Brumer, APC, immediately to schedule a free consultation to discuss your rights.

11 U.S.C. §528 Disclosure: The Law Office of Harris J. Brumer, APC is a professional law corporation providing debt relief, assisting parties that file for bankruptcy under the Bankruptcy Code.

Client Testimonials

Harris was a great lawyer for my bankruptcy case. I had an unusual situation involving mineral rights, and he made it possible for me to keep them. He always got back to me very quickly whenever I left messages, and never left me in the dark regarding my next steps.

Harris Brumer guided me so kindly and professionally through the Bankruptcy process. He completely understood how difficult of a decision it is to file for Bankruptcy and helped me to understand how it could improve my situation. He walked me through the process every step of the way and made it quite seamless. He has a wealth of knowledge and I can’t imagine going through the process without Harris Brumer on my side representing me. I will forever be grateful for his kindness and professionalism provided to me during a very difficult time. I would highly recommend Harris Brumer to anyone that is contemplating Bankruptcy and needs guidance.

Harris was very helpful in explaining the steps I needed to know for my case. Also, he did a good job reassuring me that everything would be ok because I was very nervous. He also was easy to reach when I had questions.

PreviousNext

Free Case Evaluation…

Disclaimer(Required)

Note: The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

By clicking "Submit" below I acknowledge, understand and agree to the following:

  • I may receive a response to my inquiry from an attorney;
  • I am not forming an attorney-client relationship with The Law Office of Harris J. Brumer, APC, and I understand this law firm does not represent my legal interests;
  • The Law Office of Harris J. Brumer, APC has no duty to keep confidential the information I am now sending to the law firm; and
  • I may only retain this firm or any of its attorneys as my attorney by entering into a written fee agreement and I am not hereby entering into a fee agreement.