FORMER CHAPTER 13 TRUSTEE STAFF ATTORNEY
CHAPTER 7 BANKRUPTCY
Chapter 7 Bankruptcy is sometimes called a “liquidation” bankruptcy – which means that it will cancel most or all of your debts. What this means is that when an individual files for bankruptcy, he or she may be able to discharge (cancel or eliminate) a majority of their debt prompting a fresh start.
Chapter 7 bankruptcy helps people eliminate their unsecured debt making their ongoing necessary bills more affordable. Additionally, obtaining a discharge and getting a fresh start permits individuals to begin planning for the future. Once an individual is able to discharge (eliminate) their unsecured debt, they may have the ability to save money.
Among other things, this money can be used to save for retirement, education, and traveling rather than to pay down debts that may take years to pay-off or zero out. The result is a lack of savings or retirement income which may lead to working well beyond the retirement age. To gain more information and have your particular situation evaluated please complete the free evaluation or call 716-573-4980.
What is the bankruptcy process and how can I help you?
In general, once a bankruptcy is filed, everything you own or have a claim to becomes part of the bankruptcy estate. The Court then appoints a trustee to administer the estate. The Trustee is an individual who is responsible to analyze your estate. The estate includes a majority of your assets and liabilities. The Trustee is most likely an attorney and individuals will need the assistance of an attorney to help them protect their assets against the claims of the Trustee through diligent research and effective planning.
The Court will also send out a letter to your creditors notifying them that a Chapter 13 bankruptcy has been filed. At this point, creditors are required to discontinue any communications with you. This is known in Bankruptcy as the Automatic Stay. Once the automatic stay takes effect, creditors will no longer be able to:
1. Continue foreclosure proceedings against your home, and/or
2. Continue a repossession action against your car or other property, and/or
3. Send Collection letters, and/or
4. Continue making harassing phone calls, and/or
5. Begin or continue to garnish your wages, and/or
6. Begin or continue to sue you.
An experienced attorney can help protect you from any violations of the automatic stay. For more, please visit the free bankruptcy evaluation or call 716-573-4980.
The next step in the process is a meeting with the trustee pursuant to section 341a of the bankruptcy code. This is also known as the meeting of creditors. After the meeting is conducted, the trustee will make a recommendation on the administration of the estate. During this process, you have certain rights and protections that will need to be guarded. This can be done through effective bankruptcy planning and strong representation.
The last step in the bankruptcy process is the discharge. The discharge is typically issued 90 days after the bankruptcy is filed. The discharge is the main reason people file for bankruptcy. It is the official cancellation of the debts pursuant to section 727 of the bankruptcy code. It includes any debts that do not survive the bankruptcy.
It is important to have an attorney at each stage of the process. An attorney will alleviate the stress of filing for bankruptcy while providing the necessary representation and protecting your interests.
*How do you begin the process? You can begin the process by completing the Free Evaluation.