Bankruptcy is still an option for most individuals, despite the rumors that it is nearly impossible to file for bankruptcy relief after the laws were modified in 2005. We are ready and able to help you get relief from your debts. 

Searching the internet, listening to friends and reading magazine articles to learn about bankruptcy will only cause you further worry and confusion. At this difficult and emotional time in your life, you may wish to speak with an experienced bankruptcy attorney such as Attorney Beavens about achieving a “fresh start” for your life and your future.  

Please contact us to schedule a free consultation to discuss how bankruptcy works and to explore your bankruptcy options. Call today (603) 742-2332 or fill out a brief form to have Attorney Beavens contact you.

About Chapter 7 for Individuals - “Straight” or “Liquidation” Bankruptcy

Filing a Chapter 7 bankruptcy will stop creditor harassment and discharge many types of debts such as credit cards, deficiencies on repossessed vehicles, medical bills, lawsuit judgments, older tax debts and payday loans.  The bankruptcy permanently prohibits creditors from enforcing claims against you. However, certain debts cannot be discharged in a Chapter 7 bankruptcy, including but not limited to, certain taxes, student loans (with limited exceptions), domestic support obligations and debt procured by fraud.  The collection of these debts may resume after your case is closed.

Chapter 7 bankruptcy is often referred to as a “liquidation bankruptcy” because the person appointed to your case, called a trustee, may “liquidate” assets that exceed what you are permitted to keep and convert them to cash to pay your creditors. If you do not have excess assets, there is nothing to liquidate and the case is deemed a “no asset” case because there is no money available to pay creditors. However, harassing phone calls from collection agencies, foreclosures, repossessions and garnishments must cease immediately upon your bankruptcy filing.

Chapter 7 cases move relatively quickly from the time of filing until the time you receive your discharge.  If there are no challenges to your discharge by creditors or a trustee, you could receive your discharge in as little as four to five months from the date of filing. 

About Chapter 7 for Businesses

Some businesses are unable to, or do not desire to, reorganize in order to continue to operate. Chapter 7 liquidation is a method by which a corporation may dissolve under the oversight of a trustee. Essentially, the owners of the business turn over all of the assets of the business that are not encumbered by liens of secured creditors to the trustee who then liquidates those assets and distributes the proceeds to creditors. The Chapter 7 liquidation allows for an orderly closing of the business and less of a headache for you.  Practically speaking, filing a Chapter 7 bankruptcy limits creditors' claims against the company to monies available from the bankruptcy estate.

About Chapter 13 - “Wage Earner Bankruptcy”

Chapter 13 is a reorganization for individuals or sole proprietor business owners who meet certain disposable income and debt criteria. Chapter 13 was intended to give the “wage earner” a reasonable opportunity to arrange installment payments out of future income. In this way creditors receive more money than they otherwise would receive in liquidation.

Chapter 13 allows elimination of unsecured debt through a three to five year payment plan usually at a fraction of the actual debt.  In addition, Chapter 13 is an attractive choice for people who have fallen behind on payments for a home mortgage, real estate tax, domestic support obligation or car loan. It allows you to avoid foreclosure or repossession by forcing a repayment plan on creditors for the arrearages while keeping normal monthly payments current. So long as you stay current on your payments, the creditors are prohibited by the Bankruptcy Code’s automatic stay from taking action against you to collect on the debts.

We are a Debt Relief Agency under the United States Bankruptcy Code.  We help people file for bankruptcy relief under the Bankruptcy Code.