Art. I, Section 8 of the US Constitution states:
“The Congress shall have power to . . . establish . . .uniform laws on the subject of bankruptcies throughout the United States . . . “
Source: Cornell University, Legal Information Institute
What Is Bankruptcy?
Proud to serve as a “debt collection agency,” assisting individuals, couples, and companies, and filing bankruptcies under Title 11 of the US Code. Also assisting individuals, couples and companies with debts pursuant to Title 15 of the US Code, and similar laws.
The Firm focuses on Chapter 7 liquidation bankruptcy, for individuals, couples, and companies. Chapter 7 is the liquidation of personal debt, or for companies that are going out of business.
The client must declare all assets and debts, and attend meeting with the United States Trustee. Certain assets are exempt from seizure by the government, so it is necessary to be sure that all appropriate protections are in place.
The Firm has literally liquidated millions of dollars in debt for individual and business clients over the last several years. This has allowed the clients to have a fresh start.
Bankruptcy is not a dirty word, but a clean slate.
Frequently Asked Questions
Must I Disclose All My Bills And Assets In Bankruptcy?
The bankruptcy process depends upon full disclosure. The United States Trustee, who represents the court in bankruptcy proceedings, is entitled to know all of your assets, as well as all of your debts and the identities of all of your creditors. If you knowingly fail to disclose something, not only will the Trustee feel that you are dishonest, but you could also be fined or imprisoned. Worse still, your cancellation of debt, or discharge, could be undone, even several years after you receive it. Always be careful to tell the complete truth in bankruptcy proceedings.
How Long Do Bankruptcy Proceedings Take?
A standard Chapter 7 bankruptcy, which includes cancellation of consumer debt, or the cancellation of the debt of a company that is closing down, may take as little as six to eight months. The matter becomes more complicated, however, if the Trustee finds that there is property that can be seized and sold to pay off some of the unsecured creditors. This is so if the consumer has a home with equity, expensive cars, or if the company fails to stop operations. In these latter situations, the proceedings could drag on for several more months. A Chapter 13 bankruptcy in which a consumer has a payment plan to pay off secured creditors, while discharging many of the unsecured debts, will generally last from three to five years. A Chapter 11 bankruptcy, which is typically for larger companies to reorganize their debt, may also take 2 or 3 years. The LA Dodgers’ Chapter 11 bankruptcy lasted over 2 years.
Will Bankruptcy Hurt My Credit?
Will bankruptcy hurt my credit? A bankruptcy will go on your credit report, and there may be some future creditors that may hold it against you. It may also have a negative effect upon your credit score. But think about the alternative, as the debts linger on your credit report for years as defaults, or charge offs, with late fees, etc. Those will finally be gone. And some creditors may see you as a better risk, because your unsecured debt has finally been taken care of.
Can I File Bankruptcy More Than Once?
Yes. There are many variations, but assume you go through a Chapter 7 and go all the way through discharge. You can file another Chapter 7 and go all the way to discharge eight years later. Moreover, if you go all the way to discharge in Chapter 7, and need to file a Chapter 13 1 year later, you can also do that. However, for example, you must be sure to follow the requirements of Chapter 13, or your case may be dismissed.
*As with anything, these previous results do not result in a guarantee of success in any future case, because each borrower, and each case, is different.
Success Story 1
A couple filed for bankruptcy, as the husband, who had been quite ill, began making arrangements to retire. A key consideration was the exemption for life insurance. This became critical when the husband died. The firm was able to protect the full value of the life insurance, for the benefit of the surviving wife.
Success Story 2
A small grocery store chain went out of business with $1,000,000 in corporate debt.
Although corporations do not get a discharge, The Firm succeeded in putting that debt in a non-collectible posture. The clients were able to go on to conduct a new business.
Success Story 3
The clients had significant equity in their home, which could have resulted in foreclosure by the US trustee. The Firm was able to locate a lender who could arrange a loan, pay off the Equity to the trustee, and liquidate the personal debts. The clients kept their home.