Bankruptcy*
Chapter 7 (Individual Liquidation)
A Chapter 7 Bankruptcy discharges many (or most) of your debts immediately and allows you to reaffirm certain property debts, such as your mortgage or car payment. In most Chapter 7 cases, the Bankruptcy will stop garnishments, lawsuits, and harassment permanently. Temporarily, it will stop repossessions and foreclosures.
Chapter 7 is a good solution if your debts include medical bills, credit card/department store debts, old taxes, and most other unsecured debts. If you are merely behind on mortgage or automobile payments, Chapter 7 might not be for you.
Our firm charges $1,500.00 for Chapter 7 Bankruptcies plus a $299.00 filing fee. Fees are subject to change and do not include expenses.
Chapter 13 (Individual Reorganization)
An individual with a higher and more regular income can still face debt crisis, but may not qualify for the Chapter 7 "Means Test." Chapter 13 allows individuals to pay off all, or most, of his/her debts by paying creditors in installments over the next three to five years.
The bankruptcy court appoints a trustee to manage the individual's funds according to a plan filed by the individual. Ideally, the bankruptcy court will enter an order that allows the trustee to make regular payments to remaining creditors from the funds that the individual pays to the trustee according to this plan.
Please contact us to discuss whether a Chapter 7 or Chapter 13 would benefit you most.
*Putnam & Hartmann, LLC is a debt relief agency. This firm helps individuals file for bankruptcy relief under the bankruptcy code.