Bankruptcy
Personal Bankruptcy
The decision to declare bankruptcy can be very difficult, whether you are declaring bankruptcy for your personal or business finances. At Chuck Franklin Law we will work with you to determine whether bankruptcy is the right choice for you.
Bankruptcy was designed to give people a fresh start. It can allow you to keep your home and your car. Declaring bankruptcy can also allow you to eliminate unsecured debts, such as credit card and medical bills.
One of the biggest myths about declaring bankruptcy is that you cannot rebuild your credit. Many people can qualify for credit again shortly after declaring bankruptcy. However, declaring bankruptcy does not relieve you of domestic support order, tax, debt, or student loan obligations.
There are a number of indicators that can help you determine whether its time for you to file bankruptcy.
- You are having a tough time making your minimum monthly payments
- You are using your credit cards to pay your bills
- You are juggling debt from credit card to credit card
- You cannot make you mortgage payments
- Creditors are harassing you at home or at work
In 2005, Congress passed the Bankruptcy Abuse Prevention and Consumer Protections Act. This Act reformed the bankruptcy laws and requires credit counseling prior to filing for bankruptcy. With the current bankruptcy laws and all the necessary paperwork that must be filed, you may not want to go through the process of declaring bankruptcy alone. Call Chuck Today!
Save Your Home!
You can still keep your home, even if you declare bankruptcy. One of the biggest myths about bankruptcy is that you will lose your home if you declare bankruptcy. Bankruptcy can allow you to escape from under the weight of your debt without losing your house.
Filing for Chapter 7 bankruptcy can allow you to get rid of your unsecured consumer debt and keep the secured debt you want to repay. This allows you to keep your secured debt, such as your house and car payment while eliminating the high credit card interest and fees!
We can help you make the difficult decisions!
Don't get tricked into handing over the deed to your home in order to avoid bankruptcy. We can help you figure out whether a short sale or bankruptcy is the best option. We will work with you to help you make the best decision for your situation.
You can Rebuild Your Credit after a Bankruptcy!
Another myth about bankruptcy is that you won't be able to rebuild your credit after you declare bankruptcy. We will work with you to help you make the best decision for your situation.
There are a number of options that you can take advantage of to rebuild your credit:
- Make your payments on time
- Open a savings account and make monthly payments
- Get a secured credit card and make payments on time
Types of Personal Bankruptcy
Chapter 7 (Liquidation Bankruptcy)
Chapter 7 Bankruptcy will allow you to liquidate all non-exempt assets which you own and then distributes the money acquired from this to your creditors.
Chapter 13 (Consumer Reorganization)
Under chapter 13 bankruptcy a debtor is able to restructure their debts with lower or no interest. This allows someone with a regular income to be able to repay their debts more easily.
For more information on personal bankruptcy contact chuck today at (480) 545-0700!
Business Bankruptcy
Have your business expenses become overwhelming? Are you getting harassing phone calls from collection agencies threatening to take legal action against you personally?
A creditor's ability to collect will depend on factors such as how your business is organized, and wether you personally guaranteed any repayments.
Sole Proprietors and Partnerships
If you are a sole proprietor, you and your business may be considered to be one and the same. This means that you may be personally responsible for all of your business debts.
In a General Partnership, each partner is personally liable for the entirety of the business's debts. This means that creditors can take your personal assets to pay all of the business's debts, not just your share.
Corporations and Limited Liability Companies
If your business is organized as a corporation or a limited liability company (LLC), your personal assets are usually protected from business creditors, unless you specifically gave up your limited liability.
Types of Business Bankruptcy
Chapter 7 (Liquidation Bankruptcy)
Chapter 7 Bankruptcy will end your business interests. If the trustee can find a buyer, the business may be sold to pay the bills. If the trustee cannot sell the business, he may sell non-exempt property which you need to operate the business.
Chapter 11 (Debt Adjustment)
Chapter 11 bankruptcy will allow you to continue to operate the business. The Trustee may require you to file a monthly "Operating Statement" showing business income and expenses, to make adequate provision for payment of taxes, or to make other reports.
For more information on business bankruptcy contact chuck today at (480) 545-0700!
*The information contained in this website is for informational purposes only and should not be construed to be legal advice. If you want legal advice, contact Chuck today!