Bankruptcy is a process designed by the federal court to help individuals or businesses eliminate their debts or repay their debts under the protection of the bankruptcy court. The two most common types of bankruptcy are Chapter 7 Bankruptcy (“liquidations”) and Chapter 13 Bankruptcy (“reorganizations”).

Chapter 7 bankruptcy is often referred to as a liquidation bankruptcy in which property is sold (or liquidated) to pay off as much of your debt as possible, but leaving you with enough property to have a clean start. Chapter 13 bankruptcy is often referred to as an individual debt adjustment and is the most common type of “reorganization” bankruptcy for consumers. In a Chapter 13 bankruptcy, the consumer would typically repay his/her debts over three to five years.

Bankruptcy has many rules and exceptions to those rules such as what kinds of debts are covered, who can file bankruptcy, and what property you can and cannot keep. Due to the financial pressure and stress or accrued debt often placed upon a marriage or divorce proceeding, bankruptcy and divorce are often associated with one another.

If you or your soon to be ex-spouse are thinking about bankruptcy or have questions about bankruptcy, we invite you to contact us to schedule an appointment to discuss your situation and/or legal need. For a free consultation, call (866)463-2448, or send us a request for an appointment online.