What is Bankruptcy? Bankruptcy is a legally declared inability or impairment of ability of an individual or organization (debtors) to pay its creditors. In the majority of cases, bankruptcy is initiated by the debtor against a scheduled list of creditors. An experienced attorney, such as those at Stamm Romero & Associates, PC, LLO, can help you determine which category you as a debtor will fall into, as follows:
- Chapter 7: basic liquidation for individuals; also known as straight bankruptcy; it is the simplest and quickest form of bankruptcy available
- Chapter 11: rehabilitation or reorganization, used primarily by business debtors, it is a form of corporate financial reorganization which typically allows companies to continue to function while they follow debt repayment plans
- Chapter 13: rehabilitation with a payment plan for individuals with a regular source of income; enables individuals with regular income to develop a plan to repay all or part of their debts; also known as Wage Earner Bankruptcy.
TOP THREE BANKRUPTCY QUESTIONS:
Q: How long does a Chapter 7 Bankruptcy proceeding take?
A: Generally, a Voluntary Petition for Bankruptcy can be filed with the bankruptcy court within 2-4 weeks of retaining an attorney. The next step, a 341 Hearing, is typically scheduled within 6-8 weeks of this filing. In most cases, once the 341 Hearing is complete the Trustee will send a report of ‘no assets’ and a final discharge will be granted within another 6-8 weeks. Therefore, typically with the help of a competent and experienced bankruptcy attorney, such as those at Stamm Romero & Associates, PC, LLO, the Chapter 7 bankruptcy process can be completed within 3-4 months.
Q: When will the creditors quit calling me?
A: As soon as the creditors receive notice of filing of the Voluntary Petition for Bankruptcy they are no longer able to contact you, and the telephone calls should cease. However, as soon as a debtor retains the services of Stamm Romero & Associates, PC, LLO, we ask that you give any harassing creditors our name and contact information so that we can handle these stressful situations for you.
Q: What personal property will I be able to keep?
A: In a Chapter 7 Bankruptcy most, if not all, of a debtor’s personal property can be kept. Even up to $60,000.00 in equity in a home can be retained if the debtor qualifies under the Home Stead Exemption. Additionally, an experienced bankruptcy attorney will be able to assist you in ‘reaffirmation agreements’ for any vehicle loans which may exist. It should be noted that all bankruptcy cases are handled on a case-by-case basis and will be personalized to best meet the needs of each debtor. Schedule your free ½ hour consultation with one of our qualified bankruptcy attorney today to learn more.
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