Phone: 925.362.1725 | Fax: 925.263.1905 | 319 Diablo Rd., Ste. 202, Danville, CA 94526 | info@DanvilleLawGroup.com Bankruptcy Downloads: Download pdf file: 15 Steps to Take to Prepare for Bankruptcy Download pdf file: Bankruptcy Questionnaire Article I, Section 8 of the United States Constitution provides that Congress shall enact laws that establish "uniform Laws on the subject of Bankruptcies throughout the United States." Bankruptcy is constitutional right and one that allows the American people the opportunity to take financial risks. Of course, with risk comes prosperity and with risk comes failure. Without the bankruptcy protections afforded to us, we, the American people, would not know prosperity. Bankruptcy does not reward failure, far from it. However, without bankruptcy, those who experience difficult financial times would never be able to get from under the weight of the debt and prosper for themselves and their families. The attorneys at the Danville Law Group have the experience and expertise to provide non-judgmental counsel on the pros and cons of bankruptcy. Whether you are an individual seeking a fresh start or trying to re-organize your finances, we help you make the best decision for you, your family and your business. Our services include Chapter 7, Chapter 13 and Chapter 11 bankruptcy. Chapter 7 Bankruptcy - Liquidation Chapter 7 is designed for debtors in financial difficulty who do not have the ability to pay their existing debts. Debtors whose debts are primarily consumer debts are subject to a "means test" designed to determine whether the case should be permitted to proceed under Chapter 7. Often, our clients are concerned they will lose all of their possessions, their savings and even their retirement plan. The law provides exemptions for certain property and, under most circumstances, our clients are entitled to keep most of their possessions. For instance, currently, a Chapter 7 debtor may claim an exemption of up to $22,075.00 in cash assets. In addition, typical household goods, appliances and furniture are subject to exemption. Further, if you have money invested in a qualified retirement savings plan, that money is entirely exempt from the reaches of the creditors. Of course, each case is different and must be evaluated independently. The primary benefit of filing a Chapter 7 case is to obtain a discharge of your existing debts. Credit card debt, medical bills and certain taxes are dischargeable, which means that if you comply with the rules, you are entitled to legally walk away from these obligations and start fresh. The entire Chapter 7 bankruptcy process is designed to be fast and efficient. Most Chapter 7 cases take approximately 90 days from the date of filing the petition to the date you obtain your discharge. Unfortunately, not all debts are dischargeable in a Chapter 7 bankruptcy. For instance, most taxes, student loans, domestic and child support payments, and debts obtained through fraud are not normally dischargeable in bankruptcy. Chapter 13 Bankruptcy - Individual Reorganization Chapter 13 is designed for individuals with regular income who would like to pay all or part of their debts in installments over a period of time. You are only eligible for Chapter 13 if your debts do not exceed certain dollar amounts as set forth in the Bankruptcy Code. Under Chapter 13, you must file with the court a plan to repay your creditors all or part of the money that you owe them, using your future earnings. The period allowed by the court to repay your debts may be three years or five years, depending upon your income and other factors. The court must approve your plan before it can take effect. After completing the payments under your plan, your debts are generally discharged except for domestic support obligations; most student loans; certain taxes; most criminal fines and restitution obligations; certain debts which are not properly listed in your bankruptcy papers; certain debts for acts that caused death or personal injury; and certain long term secured obligations. Why should you file for Chapter 13 bankruptcy protection? If, for instance, you are behind on your mortgage payments, for whatever reason, but can now make the payments, and a little extra to get caught up, Chapter 13 bankruptcy allows you pay the arrears usually over a 5 year time frame. Chapter 11 Bankruptcy - Business Reorganization Chapter 11 is designed for the reorganization of a business but is also available to individual consumers whose debts exceed the Chapter 13 limits. Chapter 11 is similar to Chapter 13 in that is allows the debtor to pay is past due debts over time under the protection and safety of the court. However, the rules and procedures in Chapter 11 are quite complicated and we highly recommend you consult with the attorneys of the Danville Law Group if you intend to seek Chapter 11 Bankruptcy protection. © 2012 Danville Law Group Created by WebOutsidetheBox.com