Chapter 7 Personal
The Chapter 7 Bankruptcy is the liquidation of all your debts, period.
Chapter 7 is filed when, after paying your living expenses, there is no money left-over to pay creditors such as your credit cards or auto loans.
You may only file for Chapter 7 bankruptcy every eight years; therefore, if you filed on June 1, 2001, you will not be able to file again until June 2, 2009.
Under the rules of The Bankruptcy Reform and Consumer Protection Act of 2005 you must pass the Means Test in order to qualify for Chapter 7 bankruptcy.
Chapter 7 Business
A Chapter 7 business bankruptcy is used to wind up and close a business with debts that cannot be repaid.
All business assets will be sold, and any proceeds distributed to the creditors of the business. There are few situations in which this type of filing make sense; I can help you determine if your situation warrants the action.
Chapter 13 Personal
The Chapter 13 bankruptcy is a commitment to make payments every month for up to 5 years to a Bankruptcy Trustee.
This is the bankruptcy you file when you either do not qualify for Chapter 7, or you have priority debts like the IRS, child support, etc. that cannot be eliminated under Chapter 7 bankruptcy.
A chapter 13 may also allow you to make up late payments on a mortgage and avoid a foreclosure.
Adversarial Claims
During the course of you bankruptcy case, creditors might raise objections to your filing. These occur most often when you have committed, or have been accused of committing fraud.
These claims must be settled or heard by a Bankruptcy Judge to determine if you will be allowed to receive a discharge of these amounts.
Disclaimer: The information in this web site is not intended to constitute legal advice or to create an attorney-client relationship. The information, documents, or forms provided herein are intended for general information purposes only and must not be relied upon as legal advice. As laws regularly change, the information found on this site may not be current or accurate. You are strongly encouraged to seek out your own legal counsel in order to ensure that your rights are protected and your legal obligations met.