Bankruptcy 101

What You Need To Know

Bankruptcy is a legal option available to honest people who are struggling with overwhelming debt. It’s a fresh start. There are different types of bankruptcy and it’s important to know and understand what each type means. Some will allow you to eliminate most or all of your debt. Others allow individuals or businesses to repay a portion of their debts with an agreed-to schedule. This makes it possible to maintain operations for businesses and for individuals to keep their assets.

Extraordinary circumstances like severe illness, death, divorce, disability, or job loss can put otherwise responsible people in an unmanageable situation.  Filing for bankruptcy protection can help you protect your assets and reorganize your finances so you can start anew. It’s important to find an attorney that knows how to properly handle each type of bankruptcy as all of them are unique and all of them have to be handled differently.

Bankruptcy Options

Chapter 7 This is the simplest and most common type of bankruptcy available to individuals.  Most or all debts are discharged with the exception of student loans and child support payments. Creditors are barred from continuing to attempt collections. You may also be able to keep and continue to make payments on your car or home with the approval of the court.

Chapter 13 This option is best for those who want to keep their assets and can make managed payments under a plan approved by the court. Protection from creditors is extended and foreclosure and repossession will cease when you file. Payments are made to the court over a 3-5 year period and the trustee will pay each creditor as defined by the approved plan. At the completion of the plan, the debtor will be released from the remaining portion of the debts, even if nothing is paid on them.

Chapter 11 This option is available to businesses who want to continue to operate while making payments to creditors with an approved plan. This is sometimes used by individuals who may not qualify for Chapter 7 or Chapter 13, but still need relief from an oppressive financial situation.

The First Step

Todd Jackson is here to help you determine what is best for you. Each case is unique and your situation will be thoughtfully reviewed to provide the best possible solution.

We have helped many families take charge of their financial future. We understand that this step is not easy. We also know that getting help will make your long term financial future better. Our approach is simple. It starts with a conversation about your situation.

You owe it to yourself and your family to take step one. Contact us (link to form) for your no cost consultation and start your journey to financial peace of mind.