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Overwhelming consumer
debt can be extremely stressful for individuals, families and businesses. Bankruptcy
is a legally declared inability or impairment of ability of an organization
or individual to pay his/her creditors and is governed by bankruptcy law. The
purpose of the United States Bankruptcy Law is to allow a debtor, who is unable
to pay his/her creditors, to develop a plan that provides a fresh start. Bankruptcy
law prevents creditors from attempting to collect, including pursuing a Judgment,
garnishment of wages or seizure of certain types of property.
When looking for
a Bankruptcy lawyer, you can be assured that the Law Offices of Edward P. Graham,
Ltd. has experience in representing individuals in bankruptcy proceedings, including
protecting those individuals from creditors and collection agencies.
Chapter
7
Chapter 7 Bankruptcy
is the most common form of bankruptcy filing for individuals or families. A
filing under Chapter 7 is often called straight bankruptcy or liquidation. Under
Chapter 7, the debtor converts their assets and/or property to money. The property
or assets are sold and after declared exemptions, the proceeds are used to pay
creditors. There may be exceptions to discharge, including child support obligations,
most taxes, student loans, and fines or restitution imposed by a court for any
crimes committed by the debtor. Secured debts, such as car loans and house mortgages
may also not be discharged. Under new rules adopted through the 2005 Bankruptcy
Reform Act, it is now harder to qualify for Chapter 7 Bankruptcy. However, if
your debts consist mostly of credit cards, medical bills and other unsecured
debts, and you pass the “means” test, then Chapter 7 may be the
best option for you.
The Law Offices
of Edward P. Graham, Ltd. has the experience necessary to address your financial
problems effectively under the bankruptcy law. Call our office to schedule an
initial consultation with an experienced Bankruptcy attorney who will discuss
with you the bankruptcy law, options and strategies that are available.
Chapter
13
A Chapter 13 proceeding
petition allows individuals to reorganize or restructure their debt rather than
eliminate it. Additionally, a Chapter 13 Bankruptcy Plan enables the debtor
to keep certain assets that otherwise might be sold and liquidated under Chapter
7. A Chapter 13 Bankruptcy Petition is advantageous when a debtor has too much
income to qualify under Chapter 7 or they have a large amount of non-dischargeable
property. Individuals who file for Chapter 13 relief are required to pay a portion
of their debt to their creditors. The process is designed to allow the debtor
to use future income to pay off creditors and is completely supervised by the
court.
Hiring an experienced
Bankruptcy attorney will ensure that your interest in assets and income will
be protected. Contact the Law Offices of Edward P. Graham, Ltd. to schedule
an initial consultation for a more detailed discussion of your options.
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