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WHAT IS BANKRUPTCY & HOW DOES IT WORK?
Chapter 7: Liquidation
Chapter 7 is designed for debtors in financial difficulty who do not have the ability to pay their existing debts. Most or all of your unsecured debts will be completely erased (credit cards, medical bills, unsecured loans, most court judgments from civil cases, etc.), while some "priority" debts (mostly taxes, child support and government fines), and "secured" debts (mortgages, car loans and other debts where collateral is pledged for the loan) may be partially erased. The goal in a chapter 7 case is to receive a "discharge" of your debts. Debtors whose debts are primarily consumer are subject to a "means test", which is designed to determine whether the case should be permitted to proceed under chapter 7 or filed under chapter 13. My job as a bankruptcy lawyer and attorney or as a bankruptcy petition preparer is to confer with you and then prepare all necessary documents to file in bankruptcy court. Determining which chapter to file under, what assets can be shielded as "exempt", and what debts can be eradicated is the ultimate goal. Exemptions are very important in bankruptcy as they will allow you to start your new life free from debt and in possession of assets largely unencumbered by creditor claims. During your free bankruptcy consultation David Stone, Esq. will undertake the "means test", identify assets, liabilities and exemptions and discuss a strategy on how to shield as many assets as possible. Pre-bankruptcy planning and examining the overall options available, whether they be filing bankruptcy or not is what you can expect. When we are finished with the free bankruptcy consultation you will understand bankruptcy, what is involved in the process and have all of your questions answered and all myths dispelled. Call David Stone, Esq. right now (914)235-8900, days, weekends and evenings, for a free bankruptcy consultation today. Call (914)235-8900 or email DavidStoneLaws@gmail.com or skype david.stoneesq
Chapter 13:
Chapter 13 is designed for individuals with a regular income who would like to pay all or part of their debt in installments over a period of 60 month period. While chapter 7 is generally preferred over chapter 13, some debtors do not qualify for chapter 7 or may loose certain assets by filing chapter 7. Thus, chapter 13 may allow for retaining such assets. Chapter 13 is available to you if your debts do not exceed certain dollar limits as set forth in the Bankruptcy Code (just over one million dollars), you have regular income and your income or assets can produce a monthly positive cash flow. Under chapter 13 you must file a "plan" to repay your creditors in whole or part over a 60 month period, using future earnings, while at the same time staying current on future payments as they come due. Thus, arrears can be paid in whole or part in 60 monthly payments. In chapter 13 (and 7) contracts and leases (cars, apartments, equipment, etc.) can be "avoided" or rejected without penalty, thus shedding future expenses which you may not be able to afford going forward. In a confirmation hearing the court must approve your chapter 13 plan before it can take effect. After completing the payments under your chapter 13 plan your unpaid debts are generally discharged, except certain priority debts and secured debts (e.g. if you decide to keep a house and its mortgage or car and its loan). During your free bankruptcy consultation we will analyze what section of the bankruptcy code is best and available for you. David Stone, Esq. (914)235-8900 will undertake an in depth analysis of your situation and explain your options in a manner that is understandable to you and your family. Call David Stone, Esq. for a free bankruptcy consultation at (914)235-8900. DavidStoneLaws@gmail.com or skype to david.stoneesq
Chapter 11: Business & Large Debtor Reorganization
Chapter 11 is very similar to chapter 13, however designed for the reorganization of complex businesses and consumer debtors with extensive assets of high value. Chapter 11 allows for a debtor to retain control of its business operations and assets while simultaneously holding its creditors at bay so as to allow for breathing room to reorganize its operations. With the "automatic stay" in place the debtor can continue in business while reorganizing or orderly winding down its operations. Like chapter 13, chapter 11 can stop eviction proceedings, prevent utility termination, and prevent creditors and suppliers from seeking to collect upon judgments or proceeding with litigation. Call David Stone, Esq. for a free bankruptcy consultation at (914)235-8900 or email DavidStoneLaws@gmail.com or skype to David.stoneesq
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