The U.S.Bankruptcy law provides for is a legal process which makes it possible for people in financial peril to obtain relief from their debt while treating their creditors fairly.
Bankruptcy law provides that debt cannot be wiped out in bankruptcy. Some taxes, student loans and domestic support obligations are examples of a few.
Filing bankruptcy is a complicated matter involving a combination of state, federal and locall law. Without understanding how to best proceed one could lose assets that could normally be protected.
In a typical, no-asset Chapter 7 case one can expect to receive a Discharge in five to six months. If the trustee or a creditor files an objection or complaint it could take considerably longer. Sound legal advice can most often prevent these problems.
A Chapter 13 (Reorganization) allows a person to retain his property in exchange for paying his unsecured creditors the value of his non-exempt property (property that cannot be protected from creditors) and any income that is not required for necessary living expenses.
If you have additional questions, please call for an appointment.
Chapter 7 (Liquidation) allows one to surrender all of his non-exempt property to the Chapter 7 trustee. He will sell the property and pay it to unsecured creditors as full payment for their debts.