Where To StartStep #1 is to use our free bankruptcy evaluation below to get more information about bankruptcy.
Available OptionsAs with anything, the sooner you act, the more options you will have. Start on our free evaluation below.
Rebuild Your CreditAfter bankruptcy, your bills will be lower, but it's crucial to rebuild your credit ASAP. We'll help you there too!
Please only click submit once. It may take up to 30 seconds for your form to submit.
After submitting this form, please check your email for your free ebook and expect a call from our offices shortly.
The Bankruptcy Court System
Bankruptcy cases are handled by federal bankruptcy courts. Bankruptcy is not handled by the state courts and in general, the state laws do not affect bankruptcy. The exception to this is when federal laws are not clear or do not address certain other issues of that state. When this happens, state law may be used as a deciding factor. There are 94 federal judicial districts and your bankruptcy lawyer will make sure you file in the correct court.
The best advice we can give is to always consult with an attorney before attempting to file bankruptcy on your own. Even if you decide to file on your own, the free consultation will help you avoid the most common mistakes.
The United States Constitution (Article 1, Section 8, Clause 4) gives congress the right to establish uniform laws that govern bankruptcies in the United States. Congress enacted the Bankruptcy Code and gave jurisdiction to the federal courts. There are six types of bankruptcy and it can be used for individuals, businesses, and even municipalities. The Bankruptcy code governs each of the six types of bankruptcy.
In 2005, significant changes were made in the bankruptcy code. The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA - Pub. L. No. 109-8, 119 Stat. 23) was enacted and made it more difficult for consumers to file for bankruptcy protection. Because of this new act, those who want to file for bankruptcy must participate in credit counseling with an approved counseling agency. A “means test” was also implemented to verify that the filer can not make their payments without bankruptcy. This means test made it harder for many to file for Chapter 7 bankruptcy.
Chapter 7 and 13 are the most popular forms of bankruptcy for consumers. A Chapter 7 bankruptcy is for individuals and businesses and requires a liquidation of assets to pay off the debt. Any debt that can not be paid with the proceeds is forgiven.
In a Chapter 13 bankruptcy, the court establishes a repayment plan for the debt and the filer is allowed to keep the assets. Chapter 13 bankruptcy is very popular today, because of the drastic rise in foreclosure rates. With a Chapter 13, the home owner can keep the home, with a more affordable payment.
The BAPCPA also make credit counseling a requirement for any individual wishing to file for bankruptcy. This effects Chapter 7 and Chapter 13 bankruptcy.
"Requirements for credit counseling have left the door open for scammers who claim to be 'not for profit' companies. Many are just fronts taking advantage of the clients!" A Chapter 11 bankruptcy is primarily for businesses, but could sometimes be used for individuals with larger assets and debts. A Chapter 11 bankruptcy puts creditors on hold to allow time to restructure the debts and/or rehabilitate the business. This is often used when a business can no longer afford to service their debt and need time to recover.
A Chapter 12 Bankruptcy is a special type of bankruptcy reserved for farmers and fishermen. This type of bankruptcy allows the "family" farmer or fisherman to structure a repayment place to satisfy his/her debts over a period of up to 5 years.
Filing for bankruptcy doesn't have to be scary. Just make sure it's your best option before moving forward.
Chapter 7 Bankruptcy
Chapter 13 Bankruptcy
Learn about everything you need to know about the Bankruptcy Courts here!
