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BANKRUPTCY BASICS VIDEO
VIEW 'BANKRUPTCY BASICS' VIDEO ONLINE
RELIEF
IS JUST A CLICK AWAY, ONLINE INFO REQUEST FORM, PAGE DOWN:
BANKRUPTCY LAW IS COMPLEX, AND YOU MUST CONSULT WITH OUR
OFFICE OR OTHER QUALIFIED BANKRUPTCY COUNSEL TO DETERMINE WHICH CODE PROVISIONS ARE APPLICABLE TO YOUR CIRCUMSTANCES AND TO
DETERMINE YOU ELIGIBILITY FOR RELIEF:
SEE INFO/UPDATES SECTION - BANKRUPTCY LAW BASICS
ANSWERS
TO 'FREQUENTLY ASKED QUESTIONS' - PAGE DOWN:
Bankruptcy provides legal and financial relief to individuals and
married couples, partnerships, corporations and other entities who find themselves unable to keep up with regular payments
demanded by creditors and collectors either by eliminating that debt outright, called "discharge of indebtedness" or by restructuring
(modifying the terms of indebtedness), rescheduling (extending the term for repayment or modifying it to accommodate ability
to pay), and reducing the balance owed, the rate of interest, and/or the monthly installment payments.
CHAPTER
13 is available even to those who have filed a prior Chapter 7 case, and is used to stop home foreclosure, vehicle repossession
and provides an opportunity to pay certain debts (such as taxes) without interest, or to restructure payments on secured debts.
REORGANIZATION under Chapters 11, 12 or 13 is far more complicated than regular Chapter 7 bankruptcy proceedings,
and each case is unique. However, there are certain basic rules, to wit: a) creditors must be paid, over time, at least as
much as they would receive in a Chapter 7 case, b) the debtor must demonstrate an ability to make proposed payments under
the plan of reorganization, and, c) the plan must pay all non-dischargeable debts in full and provide for payment of secured
claims with interest.
CHAPTER 12 cases are restricted to individuals who are "family farmers".
CHAPTER
11 is usually a corporate or business reorganization.
CHAPTER 13, however, is widely used by consumer debtors.
Chapter 13 provides the debtor an opportunity to stop any impending repossession or foreclosure, to stop creditor wage garnishments
and IRS or state tax levies and thereby protect income and property by proposing a new plan for repayment of these and other
obligations, a plan devised to "fit" the debtor's budget and projected income over the next 36-60 months.
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VIEW
THE "BANKRUPTCY BASICS" VIDEO ONLINE and
ONLINE RELIEF IS JUST A CLICK AWAY - SEE LINKS:
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FAQ: FREQUENTLY ASKED QUESTIONS ABOUT BANKRUPTCY
Q.
Who is eligible to file bankruptcy?
A. Any individual, married couple, partnership, corporation or other legal entity
is eligible for relief under one or another section of the Bankruptcy Code, the more common sections or chapters being Chapter
7 and Chapter 13, which are primarily for consumer debtors, Chapter 11 which is usually for business reorganization and Chapter
12 which is for "family farmers". A Chapter 7 bankruptcy can only be filed every eight years, and there are relevant intervals
and restrictions regarding the other chapters, but is no formula or other qualification for bankruptcy; deciding whether or
not to file is an individual decision or judgment that it is necessary and in your best interests, although the new law does
involve qualification through "means testing" and, in effect, imposes and eligibility barrier for those with incomes above
the median.
Q. Will I receive a discharge in bankruptcy?
A. Bankruptcy relief is available for the honest debtor,
and unless you have defrauded someone in obtaining credit, you may assume that you will receive a discharge of debts in bankruptcy
except those other few which are not dischargeable, for example, student loans, certain income taxes, drunk driving injuries,
fines, maintenance or alimony and child support. If you are elligible to file, bankruptcy relief is guaranteed, automatic
and immediate; in fact, the "Order For Relief" is stamped upon your petition when it is received by the Bankruptcy Court.
Q.
What property will I lose; can I keep my car, my home?
A. Most debtors are able to keep all of their property, including
their car(s) and their home. Under state or federal exemptions, most property owned is "exempt" from creditor claims, meaning
the creditors cannot touch it to satisfy their claims. While, in theory, bankruptcy liquidates the non-exempt property of
the debtor in order to partially repay creditors , in fact, this rarely occurs because the debtor has no non-exempt property
and all that the debtor "loses" is their debts. It's important to understand, however, that secured creditors, those who protect
their interests with a security agreement providing them with a lien or claim on specific property (an automobile or real
estate, for instance) must continue to receive payments during and following bankruptcy if you want to retain possession and
use of that property, called "collateral". You can "walk away" from secured debt, but you cannot do so and also keep the collateral:
talk about refinancing!
Q. Do I have to go to Court?
A. Yes, you will have to appear in Court, but ordinarily
there is only one appearance required and that is at the Section 341 meeting held approximately 30 days after you file your
petition. This hearing is conducted by the trustee, not the Bankruptcy Court Judge, and is somewhat informal and usually quite
brief. You (and your spouse) will be there, your attorney will be there, and probably nobody else except other attorneys and
debtors waiting for their case to be called; creditors rarely appear because whatever problems, questions, etc. which they
may have are typically resolved by the attorney between the date the petition is filed and the date the hearing is held. The
trustee will require you to state under oath that the information you gave your attorney and which is reflected on your bankruptcy
schedules is true, correct and complete to the best of your knowledge, that is, that you honestly listed all of your property
and all of your debts, and he may ask some specific questions regarding your estimates of the fair market value of property,
or regarding your income and expenses, but the Section 341 hearing, while important, is not a trial but a hearing and, infact,
is more like a "meeting" or conference to review the facts and ensure that the file is complete and correct.
Q. How
will bankruptcy affect my credit rating?
A. First ask yourself, how good is your credit rating today, before you file
bankruptcy? If you have any valid reason to consider filing bankruptcy, chances are pretty good that your credit rating is
already pretty bad, or will soon be. If you have previously payed your debts in full and on time and can continue to do so,
by all means you should! But if you a reconsidering bankruptcy, it would seem safe to assume that you have missed numerous
installment or monthly payments, that you have some accounts in collection, perhaps you even have some small claims or regular
civil claim judgments outstanding against you and may even have been subjected to wage garnishment, replevin/repossession
or foreclosure proceedings. And, in that event, bankruptcy probably will have only one effect upon your credit rating: it
will improve it. Even if you've always had excellent credit, but due to unemployment, illness or otherwise you are now falling
behind in payments and won't be able to "catch up" soon, you'll find a credit rating is a fragile thing and quite quickly
tarnished and easily wrecked, and bankruptcy is not necessarily a more negative entry on your record than delinquent accounts,
judgments, repossessions and foreclosures ; in fact, creditors recognize that at least, after bankruptcy, you should be "debt
free" and better able to repay new loans or extensions of credit.
Q. Isn't there some way I can file bankruptcy and
still repay my debts?
A. Yes, and yes. In Chapter 7, you can repay any debt you want on a voluntary basis, plus you
will probably want to formally reaffirm your legal obligation to repay your home mortgage, your car loan and perhaps a few
other secured debts. In Chapter 13, you prepare a budget and propose a plan to repay some or all of your debts over a term
of 36-60 months; your plan will provide for repayment of debt to the extent that it is possible to repay and on repayment
terms which you afford.
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LEARNING RIGHTS, MAKING DECISIONS, TAKING ACTION:
Bankruptcy
is a complicated topic; in fact, the U.S. Bankruptcy Code is reputed to be one of the most complex and difficult to understand
sets of statutes.
In order to evaluate the effects and potential benefits of bankruptcy, it's necessary to have a
firm grasp on all the financial facts including assets, debts, income and expenses.
Therefore, the first step in considering
bankruptcy is to gather together the necessary information and to review that information with qualified counsel.
We
can provide you with a brief outline of the basic facts about bankruptcy, "Debt Relief and Bankruptcy", and our bankruptcy
information letter which sets forth a list from which you can compile the data. We also have an excellent video available
for you to view "free of charge" in our office, or in your home, and we suggest you call and arrange to see "Bankruptcy Basics".
Finally, we will meet with you for an initial consultation to review your information and advise you on the pros and
cons, advantages and disadvantages of Chapter 7 and/or Chapter 13 bankruptcy for you, based upon your unique set of facts
and your individual circumstances, and we'll do that free of charge and without any further obligation on your part. All we
ask is that you come to the meeting prepared; then it is strictly up to you whether or not you elect to proceed with a bankruptcy;
perhaps we'll come up with another option or alternative.
BUSINESS BANKRUPTCY
We also have extensive experience
with business bankruptcy reorganization in Chapter 13 and Chapter 11.
While the Bankruptcy Code cannot make a success
of a failing business, it can and does give a business a "second chance" to set things right when at least some things have
gone wrong by providing some "breathing space" and taking the pressure off while some necessary changes are made to get profitable.
Filing bankruptcy stops the creditor harassment, the interruptions and distractions of lawsuits, attachments, garnishments:
it even stops the Wisconsin Department of Revenue and the Internal Revenue Service.
Bankruptcy Code provisions turn
the tables in your favor and give you important new tools with which to negotiate with your creditors and put you back in
charge of your own business again while you work out a revised, sensible business plan.
Alternately, a business can
be effectively liquidated in Chapter 11 (or in a Chapter 11 converted to Chapter 7 if it turns out "goIng forward" is just
more "full speed reverse") with you remaining in control and making decisions instead of letting your lenders or creditors
dictate what happens, when it happens and how.
If own or operate a business and have some concerns about how things
are going, if the business is strangled for cash and you're wondering about options, you should investigate what relief may
be available under the Bankruptcy Code.
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Nobody WANTS to file bankruptcy, and, sure, it's
tough to admit you have financial problems, but if you're afraid to answer your phone because of creditor and collector calls,
have your wages garnisheed and never have any money left after paying bills, you owe it to yourself to find out whether bankruptcy
is what you need for a "fresh start"....
Call us for a confidential, no-cost,
no-obligation, individual consultation:
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