A chapter 7 bankruptcy is ideal for people whose debt is mainly unsecured debt.  Most unsecured debts can be discharged through chapter 7, with the exception of some taxes and student loans.  If you are burdened with unsecured debt, such as credit cards, also known as consumer debt, a chapter 7 bankruptcy will discharge, or cancel, the bulk of those debts.  If you have secured debts, such as mortgaged property and financed cars, you can continue to make the scheduled payments or return the property to the securing party.  For many people, relief from unsecured debts provides the necessary breathing room to catch up on payments on secured items.

Chapter 13 is often referred to as a “wage earner” plan because you must be earning an income to participate in a chapter 13 plan.  In a chapter 13 bankruptcy, rather than canceling your debts, you will receive additional time to pay off your debts.  In most cases, your debts can be paid off during the established time at a substantially lower interest rate.  At the end of the plan, whatever debts you have remaining may be cancelled.  A chapter 13 plan is ideal for people whose debt is mostly secured, such as mortgaged homes and financed cars, because chapter 13 allows you to keep your property while making planned payments.

Chapter 11 is designed for businesses and professionals.  Under Chapter 11, your debt load will be reorganized, and you typically receive additional time to pay off your debt.  Your business can usually continue to operate as long as it can generate enough revenue to meet your financial obligations under the reorganization plan.  We regularly represent small business owners and professionals, such as dentists, physicians, and other solo practicing professionals.