BANKRUPTCY

There are several types of bankruptcies allowed under federal law. The most common are chapters, Chapter 7, Chapter 13, and Chapter 11.

CHAPTER 7 BACKRUPTCY
Is a complete liquidation of most debts giving you a fresh financial start. Chapter 7 bankruptcy is not available to everyone. It is typically for people who are unable to pay their basic living expenses, let alone any outstanding debts. In a Chapter 7 bankruptcy your debts are discharged, meaning you would have no further obligation to pay debts covered under the bankruptcy and may stop foreclosure as well as any other civil lawsuits. However, if you are in foreclosure you cannot save your home unless you are current, or can bring your mortgage payments current. Also there are some types of debts that are not dischargeable such as child support, student loans and tax debts.

CHAPTER 13 BANKRUPTCY:
In a Chapter 13 bankruptcy, your debts are reorganized and you are placed on a repayment plan.  Chapter 13 bankruptcy is intended for individuals who are able to pay for basic living expenses, but do not make enough to pay off their debts.  You will prepare a plan to pay back your debt over time.  If your plan is approved, you may settle your debts and stop home foreclosure, bill collector harassment, and car repossession.

CHAPTER 11 BACKRUPTCY
This bankruptcy is very complicated and primarily applies to businesses or individuals with substantial assets.  In a Chapter 11 bankruptcy, creditors are temporarily stopped from taking any action against you while you develop and submit a method of paying your debts.  Chapter 11 is designed to preserve a business which would otherwise be lost in liquidation.

At the AUBIN LAW FIRM

WE never charge a consultation fee!

CALL TODAY