When mounting debt begins to feel unmanageable, bankruptcy can provide relief. At Paul H. Spaeth Co., L.P.A., Attorney Spaeth helps you decide whether filing for bankruptcy is the most effective way for you to take control of your debt.
Analysis of your situation
Paul H. Spaeth will analyze your case to determine if bankruptcy will advance your immediate and long-term financial goals. He will review your debts, income and expenses, and will explain the full effects of bankruptcy on your family, business, home ownership and in relation to your particular circumstances. Mr. Spaeth is well versed in the many nuances of the bankruptcy law, which became more complex since it was revised by Congress in 2005. The amendments to the law impact many areas, including determining the value of your assets, the rights of your creditors, which exemptions may be claimed to protect property that you own, and who qualifies for relief under different chapters of the Bankruptcy Code due to a means test that applies if you owe primarily consumer debts. Certain types of debts also may not be discharged or, in some situations, creditors may be able to file actions within the bankruptcy process asking the court to find that a particular debt is non-dischargeable. Therefore, it is important to have a knowledgeable and experienced bankruptcy attorney represent you in this process.
Reprieve through the automatic stay
Filing a bankruptcy petition triggers an automatic stay, requiring that creditors immediately stop collection efforts, including wage garnishments, bank account attachments, sending letters or making phone calls. In certain situations, creditors may ask the Bankruptcy Court for relief from the automatic stay.
Your bankruptcy options:
Chapter 7 bankruptcy:
Chapter 7 bankruptcy is available to those individuals passing a means test (where applicable) who wish to discharge their debts. Chapter 7 bankruptcy grants you relief from many types of debts in exchange for the liquidation by a bankruptcy trustee of assets not protected by exemptions. Since many household and personal items are exempt, you often may retain a number of assets and receive a fresh start with limited disruption to your life. However, there are certain requirements that must be satisfied in order to keep certain types of assets such as a house or a vehicle. An experienced bankruptcy attorney can help you determine if you will be able to satisfy these requirements in a Chapter 7 case.
Chapter 11 bankruptcy:
For corporations, partnerships and, in some cases, sole proprietorships, Chapter 11 bankruptcy may permit the business to continue operating while the business pays creditors under a plan of reorganization. Chapter 11 involves a complicated process, for which seasoned and experienced counsel is a must.
Chapter 13 bankruptcy:
Chapter 13 provides an option for individuals facing foreclosure or repossession, who owe certain types of debts that cannot be discharged, or who have incomes too high to pass the Chapter 7 means test. Under Chapter 13, individuals pay debt under a court-approved installment plan over a period of between three to five years. A Chapter 13 case provides numerous advantages, including the possibility of keeping your home and other assets that might otherwise be liquidated if a Chapter 7 case were to be filed.
Contact our office for a free initial consultation
Every case is different and has its own unique facts and circumstances. Call Paul H. Spaeth Co., L.P.A. at 937-223-1655 or contact us online
to schedule a free initial consultation.