Chapter 7 Bankruptcy
Chapter 7 bankruptcy is often referred to as "liquidation bankruptcy" since it helps to eliminate most unsecured debts. Consider this scenario: You're drowning in credit card bills, medical bills, and personal loans. Chapter 7 acts as a financial reset button. You file a petition, and a trustee takes charge, selling off non-essential assets to pay creditors. There are exemptions for your car, clothes, and household goods. The court then discharges those nagging debts, freeing you from collectors’ calls.
A Chapter 7 case typically takes one hundred and twenty (120) days from start to finish with a Chapter 7 Debtor receiving his or her discharge at the conclusion of the case. Chapter 7 Debtors are not required to enter into a repayment payment plan, as it allows a Debtor . to move forward quickly. However, not all debts are discharged—student loans, child support, and certain taxes remain. Nonetheless, a Chapter 7 discharge provides substantial relief to a Debtor.
We’ll explore why people choose this route. and assets are few. Many turn to Chapter 7 when they need a fresh start without losing necessities. You’ll discover how the process unfolds, step by step, and how others have walked away debt-free. This chapter explains how Chapter 7 gives you a clean slate to rebuild your financial life from scratch.
Chapter 13 Bankruptcy
Are you looking for a way to manage or reduce your debt efficiently? Chapter 13 of the United States Bankruptcy Code offers a legal solution for those who don’t qualify for Chapter 7 or want to keep valuable assets.
Do you earn a steady paycheck? Own a home you can’t afford to lose? Chapter 13 allows you to file a repayment plan with the court, spreading payments over three to five years. A trustee collects your monthly payments and distributes them to creditors, in the order of their priority. For example, if you are several payments behind on your car loan and/or mortgage, you can repay those arrears over three to five years without incurring any late fees or interest, so long as remain current with your scheduled monthly payments.
We’ll guide you through creating a repayment plan, showing how it stops foreclosure and freezes interest. A Chapter 13 lets you keep your assets while making manageable payments. Creditors stop collection efforts, giving you breathing room.
This chapter explains why Chapter 13 is ideal for those with a stable income or property they want to protect. You’ll learn how it differs from Chapter 7 and see real-life examples of people who used it to regain financial control. By the end, you’ll understand how Chapter 13 transforms overwhelming debt into a structured, achievable path to financial recovery.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is a debt reorganization process most often used by businesses that want to continue operating and cut down on their debt. It also benefits individuals who don’t qualify for other bankruptcy chapters or need specific legal protections.
Chapter 11 is more complex and costly than other types of bankruptcy, but it offers significant advantages.. This process allows businesses and individuals to restructure debt without shutting down. Imagine a company struggling but determined to survive—Chapter 11 allows the debtor to continue operating its business while renegotiating loans and contracts. The debtor files a plan of reorganization with the bankruptcy court that is reviewed by the bankruptcy judge, creditors, and the United States Trustee’s Office. The creditors then vote to accept or reject the Debtor’s plan. It’s a collaborative process, but you stay in control.
We’ll explore how this differs from Chapter 7, which focuses on liquidation. Here, the goal is recovery, not surrender. Businesses, from small shops to major corporations, use Chapter 11 to renegotiate terms and pay debts over time. Individuals with large debts or unique financial needs also turn to Chapter 11 instead of Chapter 13, which has strict limits.
This chapter breaks down the costs—legal fees, court oversight, and paperwork. But the benefits are clear: survival with your assets is intact. We’ll guide you through the process and share stories of companies bouncing back from the brink.
The Small Business Reorganization Act
The Small Business Reorganization Act (SBRA) took effect in February 2020 to help small businesses manage debt more efficiently. It provides a simpler, faster alternative to traditional Chapter 11 bankruptcy, making it easier for small businesses to restructure without overwhelming legal costs or complicated court proceedings.
Think of the SBRA as a streamlined version of Chapter 11, specifically designed for small business owners who need financial relief without losing control of their operations.
Congress introduced it to cut through red tape and help businesses recover more quickly. Under this process, a trustee is appointed, and within 90 days, the business submits a repayment plan based on future earnings. The plan typically lasts three to five years, allowing businesses to repay debts while continuing to operate.
Unlike traditional Chapter 11, the SBRA eliminates creditor committees and lengthy court battles, offering a more straightforward path to financial stability. This chapter explains who qualifies, highlighting small businesses with manageable debt levels. You’ll read about real business owners—from cafes to startups—who used the SBRA to stay afloat. We’ll also compare it to other bankruptcy options, showing why this law gives small businesses a real chance to survive and rebuild.
Foreclosure Defense
Have you received notice that your home or business is facing foreclosure?? For most people, their home or business is their most substantial investment.
Losing it can be devastating, not just financially, but emotionally as well. A foreclosure can damage your credit score for years, making it harder to recover.
In this chapter, we tackle foreclosure head-on. A lender’s notice in your mailbox means they plan to take your property due to missed payments. But foreclosure does not mean the end of your options. We’ll show you defense strategies that can help you fight back. A lawyer can review the lender’s paperwork for mistakes, negotiate better terms, or delay the process. Filing for Chapter 13 bankruptcy can halt foreclosure and give you time to catch up on payments.
This chapter outlines all your possible solutions, from mediation and loan reinstatement to legal challenges that can protect your equity. You’ll hear real stories of people who fought foreclosure and won. We’ll also explain how lender mistakes can work in your favor. Foreclosure is tough, but it doesn’t have to mean losing everything. With the right strategy, you can protect your home and regain financial stability.