BACKGROUND

Chapter 7 is the "straight" bankruptcy. It is used by individuals to get debt free simply and inexpensively. A trustee is appointed whose task it is to gather the debtor's non-exempt assets and liquidate them to pay (sometimes) a portion of the creditors' claims. Businesses that wish to liquidate and terminate their operations also can use Chapter 7 to close up shop. Partnerships can also use Chapter 7 for debt relief.

Bankruptcy is about giving the debtor a "fresh financial start." Individual debtors can receive a discharge in Chapter 7. This will ordinarily wipe out the debtor's personal liability on dischargeable debts. A discharge is not absolutely certain and will not extinguish a lien on property. You should consult with me to be properly advised on the issues of different types of debt.

To get started now, please click here. or email me at hollyguelich@sbcglobal.net 

BACKGROUND

Chapter 11 is the "reorganization" bankruptcy. If you are interested in reorganizing a business, or if you are facing large federal or state tax problems, you may use Chapter 11 because an extended period of time may be available to you for the repayment of the taxes. Chapter 11 generally allows businesses to continue operations if a feasible Plan of Reorganization can be proposed, voted upon by the creditors and confirmed by the court. Since the value of an ongoing business is ordinarily worth more than if its assets were liquidated, it is more economically efficient in the long run to reorganize than to liquidate. Cooperation among the various interests is a must to a successful reorganization. You should obtain a qualified professional to assist you in this type of proceeding since every step of the Chapter 11 proceeding is critical to its measured success. I do not provide this service as it is very difficult to succeed under the current guidelines.

BACKGROUND

Chapter 12 is the agricultural bankruptcy. It specifically is designed to meet the needs of financially distressed family farmers and ranchers to keep their farms and ranching enterprises. Your annual income must be sufficiently stable and regular to be able to make payments under a Chapter 12 plan, but allowances are made for income that is seasonal in nature. Similar in nature to a Chapter 11 proceeding, you should seek out a qualified attorney and preferably one with a working knowledge of the nuances of the agricultural economy. I do not provide this service.

BACKGROUND

Chapter 13 is the "wage earner" bankruptcy. It is also available to small uncorporated businesses owned and operated by individuals. If you have regular income and a desire to pay your debts, (or a portion of them) but currently are unable to do so, you may be able to propose and carry out a repayment plan under which creditors are paid over an extended period of time under court supervision and protection. It is possible that you could have a five year period to adjust your debts in this way while creditors are prohibited from starting or continuing collection efforts.

Any individual is eligible for Chapter 13 relief as long as the individual's unsecured debts and secured debts are less than certain amounts. Contact me to determine if this chapter is right for you. It is particularly helpful to those who are behind on home loans, real estate taxes, income taxes or if they don't qualify for chapter 7 because they have some money left over but not enough to pay everyone.

To get started now, please click here. or email me at hollyguelich@sbcglobal.net