Bankruptcy

Federal bankruptcy laws help people who can no longer pay their creditors get a fresh start by (a) liquidating their assets to pay their debts, or (b) by creating a repayment plan.  The primary purpose is to give honest debtors a “fresh start” by relieving most of their debts, while repaying creditors to the extent that the debtor has property available for payment.

Basically, with Federal Bankruptcy law, you have the chance to relieve all or part of your debts when you lack the means to pay your creditors and lenders. Two major types of personal bankruptcy apply to consumers, Chapters 7 and 13.  Trebilcock & Rovira works on those types of cases.  All bankruptcy cases are filed exclusively in federal court.  And, upon filing a bankruptcy petition at the federal courthouse, you get immediate relief from all creditors under what is called an Automatic Stay. That is an order instructing them to immediately stop trying to collect money from you.

Under Chapter 7 bankruptcy, you are allowed to discharge all or part of your debt. But, your liquid assets are used to repay some of that debt and you must meet certain requirements in order to qualify.

Regarding Chapter 13, you may choose it, instead of Chapter 7, if you have secured debt, like a car loan or home mortgage, which you want to continue paying in order to protect.  Or, you may simply not qualify for Chapter 7 because your income is above the median family income in your state.  Under Chapter 13, you repay all or part of your debt based on a 3 to 5 year repayment plan. Since Chapter 7 bankruptcy requires you to give up certain liquid assets, Chapter 13 might be a better option if you want to keep them.

In sum, Personal Bankruptcy laws are complex, and if you are considering filing for bankruptcy relief, Trebilcock & Rovira can help guide you through the entire process. That includes helping you weigh your options in order to determine whether seeking “debt relief” or filing bankruptcy protection (which should be a last resort) is the best available alternative for you.