What is
Bankruptcy?
Bankruptcy laws give an individual or business a way to manage debt. There are several different kinds of bankruptcy. The most common types are Chapter 7 and Chapter 13. Farmers may benefit from a Chapter 12. Chapter 11 is usually filed by businesses. What kind of bankruptcy you may qualify for depends on your situation. Lisa Hancock, Attorney at Law can help you out with bankruptcy.
Chapter 7
This is the most common type of consumer bankruptcy. Through it, you may eliminate unsecured debt. There are no payments to be made through the bankruptcy. You may keep some debts and exempt them from the bankruptcy (such as for a vehicle or your home). We can quote to you a fee after a free consultation with one of our attorneys. Generally, the total attorneys’ fees and court costs for a routine Chapter 7 bankruptcy will be between $1,375.00 to $1,500.00. There will usually only be one court date which is a meeting with the Bankruptcy Trustee and is sometimes called a “creditors meeting.” This typically occurs within about a month of the filing of your bankruptcy. One of our attorneys will be present with you and the Trustee will ask a few basic questions.
Chapter 13
This is sometimes known as “Debtors Court.” It is court-ordered debt consolidation for a 3 to 5 year repayment period. There is not a requirement that you pay ALL of your debt back through the bankruptcy -- how much you would have to pay depends on your situation. We can give you an idea of how a Chapter 13 would work for you once we have your initial information. The overall costs of doing a Chapter 13 are much greater than a Chapter 7, but we will usually require only the court costs of $363.00 up front to file a Chapter 13. Once you file a Chapter 13, you begin making payments to a Chapter 13 Trustee within 30 days and she distributes the monies you pay directly to your creditors. There are at least two court dates: the first will be an initial meeting with the Trustee, known as a “creditors meeting” within about a month after you file your bankruptcy. The second hearing date will be for the purpose of the Judge approving or “confirming” your repayment plan and usually is held within about 4 months of the filing of your bankruptcy. Often, your presence is not required at the confirmation hearing.
