When a business or individual’s income is insufficient to pay off debts, bankruptcy is an option guaranteed by the U.S. Code that is designed to help ease the burden of debt. Bankruptcy most often results from credit card debt, medical bills, job loss, or divorce.

We help clients to file two kinds of Bankruptcy.

Chapter 7 Bankruptcy
Or “liquidation” is much more common, usually only lasts six months or less and generally leads to the clearance of all debt. Alternately, this type of bankruptcy sometimes requires forfeiture of some property, but often a party is able to keep all property and usually most of it.

Chapter 13 Bankruptcy
Is used to “buy time” for someone who is experiencing debt, but should eventually be able to pay it off with a 3-5 year plan. The upside over Chapter 7 is that it allows the individual to keep property that could be surrendered under Chapter 7. Chapter 13 Bankruptcy can also be used to pay off debt to the IRS, which cannot be liquidated. Chapter 13 bankruptcy requires a steady income and can only be filed by individuals, not businesses.

If you decide to explore the possibility of filing bankruptcy, we will meet with you and review your financial information, such as income and expenses, as well as your total debt. We will determine whether you are eligible for Chapter 7 Bankruptcy and decide what action to take (which may not involve bankruptcy).

Bankruptcy may seem like a daunting undertaking, but it is designed by the government to help in difficult financial situations and is an option that you should consider if debt has become a burden on your life or business.

If you have questions or are ready to set up an appointment and get started, contact the Law Office of Rudnick & Hosek, Ltd.