Bankruptcy is a legal procedure for dealing with debt problems of individuals and businesses.
Chapter 7 is a relief program that is used to liquidate debts of an individual or a business. An individual filing chapter 7 can generally save a house or car, etc., so long as payments are current and maintained. It is appropriate for families, individuals, and businesses depending on the circumstances.
Not everyone is able to file Chapter 7 Bankruptcy. In order to qualify for Chapter 7, Debtors must pass a means test. The means test permits dismissal of the case if the Debtor’s income exceeds the state median income. To find out if you qualify for a Chapter 7, you should contact our attorneys for a consultation today.
Chapter 13 is generally known as a repayment plan. However, it allows the Debtor to reorganize his or her debts while under the bankruptcy court protection. This relief program is used to save a Debtor’s home, car, etc. and is generally used to stop garnishments, foreclosures, repossessions, executions, court suits, etc. It is appropriate for individuals or families.
To find out if you qualify for a Chapter 13, you should contact our attorneys for a consultation today.
Primarily for businesses but in some circumstances individuals may file. It’s primary goal is to reorganize the debtor to let them reorganize debts.
Chapter 12 is designed for Farmers or Fisherman with regular annual income. Because Farmers and Fishermen income is usually seasonal, and not monthly like most other occupations, there. This is similar to a Chapter 13, and allows for Farmers and Fishermen to reorganize their debt while maintaining their equipment, leases, and property.
For more information about Chapter 12, you should contact our attorneys for a consultation today.