Understanding the Differences — Chapters 7, 11 and 13 Bankruptcy
There is an old saying that when all you have is a hammer, everything looks like a nail. That may be true of bankruptcy. When you or your company has overwhelming debt, bankruptcy may look like the only option. It is an option, but not the only one.
At The Law Office of Paul Toscano, PC, we provide debt relief through bankruptcy, but also consider your other options. We will take a detailed look at your financial situation, and based on our experience, we can offer you a recommendation for debt relief that is based on your situation and your future goals.
Simply put, the different chapters of bankruptcy look like this:
- Chapter 7 — Removes nearly all secured and unsecured debt. A trustee sells most assets in which there is any significant equity (that is, value above debt secured by that asset). You can probably keep most assets that have no equity or that are exempt by law from seizure and sale by the trustee and judgment creditors.
- Chapter 13 — You can keep nearly all your assets because you will be required to pay the dollar value of the equities in those assets in monthly payments under a 36-month or 60-month Chapter 13 plan. The Chapter 13 trustee collects from you a monthly Chapter 13 plan payment and applies it to the payments of your creditors in the order of priority set by the Congress.
- Chapter 11 — Is the Chapter for business reorganization or liquidation. It can be used in rare cases for individuals who are not eligible for Chapter 7 or Chapter 13. Chapter 11 bankruptcies are expensive and complex. A Chapter 11 debtor can keep assets if creditors are paid the "indubitable equivalent" of their claims and other important rules are followed. A Chapter 11 debtor's creditors will vote on the terms (amount or interest rates and treatment of claims) under the Chapter 11 Plan. There is no trustee assigned in a typical Chapter 11 case; the debtor has the duties of the trustee to manage the case for the benefit of creditors.
There are many more details to each of these types of bankruptcy filings and we'd be happy to discuss them with you.
Salt Lake City Consumer Bankruptcy Attorney
Our law firm represents consumers in the north central Utah region which includes Salt Lake City. We answer questions such as:
- Am I eligible to file?
- Do I choose Chapter 7 bankruptcy or Chapter 13 bankruptcy?
- Is there a way to stop creditor harassment, stop a mortgage foreclosure and prevent or halt repossessions?
- What does life look like after bankruptcy?
Utah Business Bankruptcy Lawyer
Our law firm represents clients statewide in Chapter 11 bankruptcy reorganizations and liquidations. Please contact us if you need help with these questions.
- Chapter 11 bankruptcy — When is it a good idea?
- Business and complex bankruptcies for partnerships, joint ventures and family business — Is there hope?
- Litigation and adversary proceedings — What do I do with a trustee problem?
- Asset protection — How can it be done?
Consumer and Commercial Debt Relief with Dignity
At The Law Office of Paul Toscano, PC, we offer debt relief through Chapter 7, Chapter 11 and Chapter 13 bankruptcy. We offer the first consultation free of charge. To explore your debt relief options, call our law office at 888-509-3683, or send our bankruptcy lawyer an e-mail*.
*Please understand that we DO NOT become your lawyers just because you accessed our web site, or emailed us, or even attended a first free appointment with us. We do not become your lawyers until you sign a written contract with us that spells out the legal services we will provide and the estimated fees and costs you will pay.
WE ARE A DEBT RELIEF AGENCY. WE HELP PEOPLE FILE FOR BANKRUPTCY RELIEF UNDER THE BANKRUPTCY CODE.
