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Basic Concepts of Bankruptcy

Our firm is dedicated to providing quality and cost effective legal guidance to clients who are faced with the difficult decision of declaring bankruptcy. We understand how stressful it can be to be overburdened by debt and hounded by creditors. Bankruptcy may provide a solution to what seems like an overwhelming problem and give the Debtor a Fresh Start. The bankruptcy lawyer’s goals are to help debtors make a fresh start. A skillful attorney can guide you through the complicated legal maze of bankruptcy.

PhotoofWomanConsumer Bankruptcy Law provides two basic forms of relief: (1) liquidation and (2) reorganization. Most bankruptcies filed in the United States involve liquidation, which is governed by Chapter 7 of the Bankruptcy Code. Chapter 13 usually applies to individual consumers with smaller debts. Reorganization provides a greater opportunity to retain assets if the debtor agrees to pay off debts according to a plan approved by the bankruptcy court. If the debtor fails to do so, however, the court may order liquidation.
 

Consumer Bankruptcy
Consumer bankruptcy is a method by which debtors may be able to get out from under their debt and make a fresh start. The filing of a bankruptcy will have a negative impact on their credit ratings; however, it will give the debtor relief from the consistent torment of debt collectors. When you file a Chapter 13 Bankruptcy you file a plan that allows the debtor to retain more assets while working to pay off his or her debts. An experienced bankruptcy attorney can help you choose the right course of action for your based on your assets and debts and should be determined by each debtor’s unique situation.

Chapter 7 Liquidation
Chapter 7 is a federal bankruptcy law enacted by Congress to give single and married individuals in financial difficulty a fresh start. To qualify for Chapter 7, an individual debtor has to satisfy a financial means test. In a Chapter 7 liquidation case, a bankruptcy “trustee” collects the debtor’s “nonexempt” property and converts it into cash and disperses it to various creditors according to an order of priority described in the Bankruptcy Code. Not all creditors receive the full amount owed through this process and many creditors often do not receive anything at all. When liquidation and distribution are complete, the bankruptcy court may discharge any remaining debts of a consumer debtor.



Chapter 11 Reorganization
Chapter 11 is a federal bankruptcy law enacted by Congress to help Corporations and Partnerships and individuals who do not qualify for Chapter 7 and/or Chapter 13 reorganize their debts and assets. If you are in charge of a corporation or partnership, or have large debts and assets that won’t qualify you for Chapter 13 protection, Chapter 11 bankruptcy could be the appropriate alternative for you. It allows you to catch up on past due real estate payments, deal with back taxes and take the time you need to sell a property that has equity. While these goals are attended to, your business continues to operate.

I can help formulate your plan for reorganization, and make it reasonable enough that creditors will vote to approve it. In all matters relating to Chapter 11, I have the bankruptcy legal assistance you need and can afford.



Chapter 13 Reorganization
Chapter 13 is a repayment plan. It is a federal law designed to help single and married individuals (including owners of businesses) repay a portion of their debts with dignity and peace of mind. A plan for the repayment of debts is created by you and your attorney and confirmed by the Court. The process of creating the plan and getting it confirmed by the Court takes about six months. Upon successful completion of the plan, the bankruptcy is discharged. If the debtor fails to adhere to the plan, however, the court may still order liquidation.



Effect of a Discharge
Discharge is the bankruptcy term for wiping out many of the debtor’s remaining debts at the conclusion of the bankruptcy proceeding. A discharge is available to only certain debtors and only certain debts are discharged at the conclusion of the bankruptcy proceeding.

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Bankruptcy Help Is Here.

Lawyers specializing in bankruptcy law can help debtors overcome obstacles to the repayment of debt.

Experienced bankruptcy attorneys have the knowledge and expertise to help their clients get out from under formidable debt and emerge as productive citizens.

Bankruptcy may provide a solution to what seems like an overwhelming problem and give the Debtor a Fresh Start.

Initial consultations are always free.

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The Law Offices of Mitchell Lee Chambers...More Than Just Bankruptcy.

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The Law Firm of Mitchell Lee Chambers personally meets with every client for the initial consultation to determine the appropriate course of action.

Remember,
initial consultations are always free.

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Have A Question? Want To Know More? We're Here to Help!

If you or someone you know in New Jersey or Pennsylvania needs debt consolidation legal counsel or the assistance of an experienced bankruptcy lawyer, contact Mitchell Lee Chambers, Esquire at 856-302-1778.

It's also important to know that we're glad to meet in person...or meet with you on-line via Zoom. Whatever makes you the most comfortable.

While a phone call will provide the most immediate response, we invite your email. Contact us here.

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