The 3 goals of any bankruptcy case are as follows:
1) get Trustee and Court approval of your case, whether it be a Chapter 7, Chapter 11 or Chapter 13 filing;
2) help you to save and to protect all of your property, whether it be your house or personal property, and
3) to improve your credit rating. Most people are surprised to find out that bankruptcy can actually improve their credit scores. I have helped countless people to improve their credit ratings by filing for bankruptcy. The reason is that bankruptcy will discharge (wipe out) the types of debts that may currently be reported as late payments to the credit bureaus.
My office has helped nearly 2,000 people in Western Pennsylvania to file bankruptcy. Filing bankruptcy, either Chapter 7 or Chapter 13 or Chapter 11 can provide immediate relief. Individuals and small businesses can benefit from the fresh start that bankruptcy provides. There are a variety of bankruptcy options, and it might appear that the choices are confusing.
Actually, it’s not confusing. Chapter 7 is “straight” bankruptcy, but for consumer, they have to be below a certain household income in order to qualify. For most Chapter 7 filers, the case takes about 4 months from start to finish. The vast majority of Chapter 7 individual filers are able to protect all of their property. So, Chapter 7 is for many people the best and quickest way to wipe out (discharge) debts. And for many people, the added benefit is that a Chapter 7 filing can rebuild a person’s credit rating very quickly.
Chapter 13 bankruptcy consists of a 3 to 5 year repayment plan. The majority of filers use Chapter 13 as a tool to catch up on mortgage or tax debts in order to save their property (usually their homes). The reason is that mortgage arrears can be repaid through a Chapter 13 payment plan over a 5 year period. Certain people who have too much household income to qualify for Chapter 7 may also choose to file Chapter 13 bankruptcy instead. Anyone with any form of regular income is eligible to file a Chapter 13 bankruptcy case.
My office has also filed a number of Chapter 11 cases for small businesses and individuals. Chapter 11 cases are similar to Chapter 13 cases in that they are used to reorganize and repay debts. The majority of Chapter 11 filers are corporations, although individuals are permitted to choose Chapter 11 as well if they desire.
In any event, it’s best to contact my office first for a free consultation and analysis of your debt problems. We are usually able to suggest the best option by the end of our first meeting. To make that meeting most productive, it’s best to gather up income information (such as recent paystubs), as well as debt information (a list of current bills complete with balances and monthly payments).
Please call me at 412-920-6565 or email me at firstname.lastname@example.org to schedule an appointment. The Law Office of Shawn N. Wright is federally-designated debt relief agency that helps people to file for bankruptcy relief.