BANKRUPTCY UPDATES

• Taking Your Credit Score from Bankrupt to Perfect 10 (May 21, 2012)
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• Book Publisher Houghton Mifflin Harcourt Files for Bankruptcy (May 17, 2012)
• Las Vegas Tycoon Lists $500 Million in Debts in Bankruptcy Filing (May 15, 2012)
• Nassau Broadcasting Sells its Assets in Bankruptcy Court (May 22, 2012)

The U.S. Bankruptcy Code

Putting Bankruptcy Laws to Work For You

The U.S. Bankruptcy Code, the set of laws that govern how bankruptcy relief can be achieved by individuals, corporations and even municipalities, may be your key to a debt-free future.

While the laws are complex, the relief they offer is very real. By speaking with a local bankruptcy lawyer, you can learn more about your legal rights under U.S. bankruptcy law.

If you are buried under the weight of too much debt, and are considering seeking personal bankruptcy, fill out the form below to arrange a free bankruptcy consultation with an attorney near you.

Chapter 7 Bankruptcy Code

If you're curious how the bankruptcy laws may help you, it's helpful to know about the two primary forms of personal bankruptcy: Chapter 7 and Chapter 13.

Chapter 7 bankruptcy is the most common type of personal bankruptcy, and is designed to wipe out some types of debt. The features of Chapter 7 bankruptcy include:

• Who can file? In order to file for Chapter 7 bankruptcy, you must meet a means test. If your income is below the median income of your state, you automatically qualify. If your income is greater than the median, other factors come into play.
• What does it do? Chapter 7 bankruptcy allows most unsecured debts to be discharged. Depending on the state in which you file, you may have to surrender some assets to receive a discharge. A local lawyer can tell you more about assets and the exemptions that protect them.
• What is unsecured debt? This type of debt includes medical bills or credit card debt. Again, these can typically be discharged through Chapter 7 bankruptcy.
• OK, then what is secured debt? These are debts tied to a single physical item, such as a home mortgage or car loan. You may be able to reaffirm these debts in order to keep those items.

Chapter 13 Bankruptcy Code

In contrast, Chapter 13 is a unique part of the bankruptcy code. Common questions related to this form of bankruptcy include:

• Who can file? There is no means test for Chapter 13 bankruptcy, but in order to qualify you must have a regular income that will allow you to make consistent payments to your trustee, who will then pay your creditors. There are also limits to the amount of secured and unsecured debt that can be included in a Chapter 13 case.
• What does it do? Here, the bankruptcy court administers a full or partial repayment plan. This period lasts three to five years, and the court will attempt to devise a realistic payment plan that will help you settle your debts.
• What are its strengths? Chapter 13 is well designed for people who have experienced sudden job loss or illness. In addition, it may help stop a mortgage foreclosure.

Both types of bankruptcy offer various advantages, depending on your unique personal circumstances. To learn more about which type of bankruptcy might be right for you, call a local bankruptcy lawyer today.

Explore the Protections of the Bankruptcy Code with a Local Attorney

If you're ready to explore bankruptcy as an option, you can connect with a bankruptcy attorney today. Simply fill out our free case evaluation form to speak with an attorney and learn whether Chapter 7 or Chapter 13 bankruptcy may be right for you.