Call 800-335-3585 to see if you qualify!

Are you considering Bankruptcy?
Not sure which Chapter would work best for you?

Bankruptcy laws have changed so it is very important to understand the aspects of bankruptcy prior to filing. Bankruptcy is a method to allow an individual or commercial enterprise the opportunity to either wipe out (discharge) the debts by liquidating assets and distributing them among creditors or resolve them by developing a court-approved reorganization plan, or other plan involving the repayment of creditors over time.

It's extremely important to note that many times people file a bankruptcy to obtain a certain goal only to find that goal is NOT obtainable through bankruptcy. For this specific reason alone it is extremely important to talk to a qualified and EXPERIENCED Attorney who understands your end goal and isn't looking just to charge you a fee for services.

LCN takes the unprecedented step of requiring our member Attorneys have at least 10 years experience in their field prior to admitting them to our network. By doing this we give a leap forward in helping you select the right Attorney for your situation.

Bankruptcy Proceedings

There are two basic types of bankruptcy proceedings: liquidation under Chapter 7 and debtor rehabilitation involving a court-approved plan of reorganization and payment of the debts over a period of time using future earnings under Chapters 9, 11, 12 and 13. The following gives general information on the five chapters of bankruptcy under which the debtor may possibly file:

Chapter 7 - is a liquidation bankruptcy proceeding. The debtor turns over all non-exempt property (assets) to the bankruptcy trustee who in turn converts that to cash for distribution among the creditors. At the end of the proceeding the debtor receives a discharge of indebtedness (discharge notice) for all dischargeable debts, releasing him or her from personal liability for those debts. What's important to note is the term non-exempt property. To find out more register below.

Chapter 9 - Adjustment of Debts for a Municipality - is a federal mechanism for the resolution of municipal debts passed by Congress about 60 years ago. This form is similar to reorganization under Chapter 11, but it's only available to municipalities. Municipalities include cities and towns, as well as villages, counties, taxing districts, municipal utilities, and school districts.

Chapter 11 - Reorganization - is normally the chapter under which commercial enterprises (businesses) file. This allows the business to continue its operations while repaying creditors concurrently through a court-approved plan of reorganization.

Chapter 12 - Adjustment of Debts of a Family Farmer with Regular Annual Income - provides debt relief to family farmers. Chapter 12 proceedings are very similar to those of Chapter 13 where the debtor proposes a plan to repay debts over a period of up to three years, unless the court approves a longer period, no more than five years.

Chapter 13 - Adjustment of Debts of an Individual with Regular Annual Income - provides debt relief for individuals (consumers). Chapter 13 differs from Chapter 7 in the respect that it enables the debtor to keep valuable assets, like a house, while making payments to creditors (through the trustee) based on the debtor's anticipated income over the life of the plan, usually three to five years. At a confirmation hearing, the court either approves or disapproves the plan, depending on whether the plan meets the Bankruptcy Code's.

It's extremely important to note you MUST qualify for bankruptcy and those qualifications depend widely on the Chapter you are seeking. Bankruptcy is NOTA CURE ALL. There are many people who file bankruptcy trying to keep their home only to lose their home in the process. To ensure bankruptcy is right for you register now or Call 800-335-3585 for your free consultation.
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