Bankruptcy Services

About Chapter 7 and Chapter 13 Bankruptcy Filings

The U.S. government has established bankruptcy laws to give people burdened with excessive debt an opportunity to determine whether and how to protect certain assets and whether they qualify under bankruptcy laws for a debt restructuring or discharge.

At Solomita Law, we understand that filing for bankruptcy often feels like defeat. If that’s how you feel, we encourage you to step out of the emotion around your money issues and step into problem solving mode. With help from a qualified attorney, you can determine whether you qualify for bankruptcy and assess whether and how your assets can be protected. An experienced bankruptcy attorney can give you the advice and counsel you need to protect your interests.

We know that circumstances, such as loss of income, excessive medical bills, school expenses, life demands and lack of financial literacy can result in unexpected and excessive debt. Our goal is to help our clients evaluate their legal options so they can make informed choices going forward.

If you are considering a bankruptcy filing, you may be wondering …
– What is the difference between the various types of bankruptcyy?
– Will I qualify for Chapter 7 bankruptcy?
– What will happen if I file under Chapter 13?
– Do I need an attorney to file for bankruptcy?
– Will I have to pay back all my debts?
– Will I lose my home?
– What happens in the case of alimony payments?
– Must I pay back my college loans if I file bankruptcy?
– What will happen to my retirement savings?
– Will there ever be an end to calls and harassment from creditors?

At Solomita Law, we can answer  your questions and help you journey to a fresh financial start. Our goal is to make what can be a stressful time and complex process as smooth as possible. And we treat every bankruptcy client with compassion, understanding and respect.

About Bankruptcy Proceedings
Bankruptcy is a legal process that allows a person (a “Debtor”) who owes more money than he or she can currently repay, to either (1) repay a portion of the money over time under Chapter 11, 12, or 13, or (2) have the entire debt forgiven (“discharged”) under chapter 7. Under chapter 7, a Debtor may be required to surrender assets to a trustee. Bankruptcy is also available to businesses, corporations, and partnerships. Even municipal governments can file bankruptcy (under Chapter 9).After a Debtor has filed a case (i.e., “petition”), creditors must stop all collection efforts against the Debtor for a period of time, unless they get permission from the bankruptcy court to continue. This protection from collection efforts is referred to as the “automatic stay.”

The Bankruptcy Code and Federal Rules of Bankruptcy Procedure determine which chapter one is eligible to file, which debts can be eliminated, how long repayment must continue, which possessions can be kept, etc. The Bankruptcy Code refers to Title 11 of the United States Code (11 U.S.C. sections 101-1330). A Debtor must abide by these federal laws and rules.

What is the difference between Chapter 7 and Chapter 13?

Chapter 7 Bankruptcy  Under a Chapter 7 filing, debtors are permitted to retain certain “exempt” property, while the remaining assets are liquidated by the trustee. The trustee will distribute the funds from the liquidation to holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Accordingly, potential Debtors should realize that the filing of a petition under chapter 7 might result in the loss of non-exempt property.

Chapter 13 Bankruptcy  Chapter 13 is designed for individuals with regular income to repay a portion or all of their debt over an extended period of time. Chapter 13 may be appropriate for Debtors who seek to retain certain assets through a repayment plan.

— Chapter 11 Chapter 11 allows corporations, partnerships, and certain individuals who do not qualify under Chapter 13, to reorganize without having to liquidate all assets. As in a Chapter 13, the Debtor (called the “debtor-in-possession” because a trustee is not normally assigned) is required to present a repayment plan. If the plan is accepted by the creditors and subsequently approved (“confirmed”) by the Court, this allows the Debtor to reorganize his/her/or its personal, financial, or business affairs.

If you are considering a bankruptcy, contact an experienced bankruptcy attorney to explore legal options. Solomita Law would be pleased to assist and answer your questions.