Anyone who is considering filing for bankruptcy will benefit greatly from the advice of legal counsel before during and after the action. First of all there is the decision about which type of bankruptcy is best suited to your situation. Bankruptcy is divided into “chapters” that are coded by number. Chapters 7 and 13 are usually reserved for those who are filing as a single individual or as a married couple while chapter 11 is more appropriate to big business and chapter 12 is formulated specifically for farmers.
Your lawyer will explain that with Chapter 7, also know as “straight” bankruptcy, you may have to sell off some of your assets in order to satisfy your debt. Most property will fall under the rule of exemption but that is not a guarantee, so if you aren’t willing to take that risk chapter 13 may be a better choice.
With a chapter 13 bankruptcy debtors are allowed to come up with a payment plan to deal with the debt over a 3-5 year period of time. You must be earning an income in order to be eligible for chapter 13. As long as you can keep up the payments there will be no risk of losing your property.
Filing for bankruptcy is an effort to get out from under the burden of debt that you can no longer afford. Counsel will advise you however, that there will be some debt that will not be allowed under the law. Exceptions include most college loans, and child support or alimony payments, among others. When you first file for bankruptcy you will be required to list all of your debts. Any liability that you fail to include on that record cannot be absolved. If there is a particular exclusion that you wish to contest you can go before a judge and plead your case.
With their years of experience in bankruptcy law Parker Lawyers will be able to advise you about chapters, exemptions, courts and all the workings that are involved in the process. Call 303-841-9525 to set up a meeting.