What is bankruptcy?

Bankruptcy is a legal proceeding that can be initiated when and individual or business in unable to repay outstanding debts or obligations. It is a process available to allow individuals or businesses freedom from their debt or opportunity for repayment. Filing for bankruptcy could prevent your property from being seized, stop a foreclosure on your home or halt wage garnishment.

what are the types of bankruptcy?

There are six types of bankruptcy allowed by federal law:

Chapter 7, Chapter 9, Chapter 11, Chapter 12, Chapter 13 and Chapter 15. The three most commonly filed types of bankruptcy are Chapter 7, Chapter 11 and Chapter 13.

Chapter 7 bankruptcy is typically filed by individuals or businesses that have few or no assets and it can allow them to dispose of unsecured debts.

Chapter 11 bankruptcy is used by businesses when the goal is to reorganize, remain in business and once again become profitable. It allows the business to stay open without interruption and work on debt repayment with the courts supervision.

Chapter 13 bankruptcy is filed by individuals who make too much money to qualify for a Chapter 7 bankruptcy. Chapter 13 bankruptcy allows individuals as well as businesses, with consistent income to create a debt repayment plan. The repayment plans are commonly in installments over the course of a three- to five-year period. In exchange for repaying their creditors, the courts typically allow these debtors to keep most of their property.

Do i need an attorney to file for bankruptcy?

Federal law does not require an individual or business to file for bankruptcy relief with the help of an attorney. However, all individuals can benefit from the assistance of a bankruptcy attorney during the bankruptcy process. Bankruptcy attorneys with experience filing petitions, negotiating with creditors, and dealing with trustees ensure that debtors’ rights are protected and that debtors are able to start over financially at the conclusion of a bankruptcy proceeding.

What happens during the bankruptcy process?

A individual or business must submit a petition to a bankruptcy court and pay a filing fee (which could be paid in installments or waived). After this step, a trustee is appointed to work with the debtor and the creditors. The trustee holds a creditor meeting, to address creditor claims and the debtor’s financial status. A debtor may need to appear in court in person or virtually.

how much to you charge for services to file bankruptcy?

We handle all Chapter 7 bankruptcy cases on a flat fee basis. our fees for a Chapter 7 range from a minimum of $1,500.00 to a maximum of $6,000.00, depending on the complexity of the case. The average fee for a Chapter 7 is $1,500.00. Our flat fee covers many things that others cannot do, and other bankruptcy attorneys charge extra for. Half of the fee is due when you hire our team, and the other half can be made in payments but is due before filing of the bankruptcy petition. All costs are included except the Bankruptcy Court filing fee, which is $335.00 for a Chapter 7 and $310.00 for a Chapter 13. We typically charge $4,000.00 for a Chapter 13 bankruptcy case for debtors who work for a company, and $5000.00 for debtors who are self-employed, though complicated cases may involve additional fees. We typically ask clients to pay us $2,000.00 before the filing of the Chapter 13 petition, with the balance of the legal fees being paid through the Chapter 13 plan.