PRACTICE AREAS - BANKRUPTCY
Bankruptcy
The Law Office of Dean B. Bell, LLC, is in certain cases a debt relief agency as defined in the Bankruptcy Code. A “debt relief agency” is any person who provides any bankruptcy assistance to an assisted person in return for the payment of money or other valuable consideration, or who is a bankruptcy petition preparer" under 11 U.S.C. § 101
Our office represents debtors, (including assisted persons), and creditors in Chapter 7, Chapter 13 and Chapter 11 cases, as well as debt workouts. In addition to the other services we offer, we assist persons and companies with filing for bankruptcy protection. The term 'assisted person' means any person whose debts consist primarily of consumer debts and the value of whose nonexempt property is less than $150,000. 11 U.S.C. § 101
Prior to an individual bankruptcy consultation, please have prepared and available:
1) assets: location and present market value.
2) secured debts: mortgages, car loans, furniture loans, with creditor addresses and account numbers.
3) unsecured debts: credit cards, bills, judgments, with creditor addresses and account numbers.
4) income for you and spouse (if applicable) broken down into a monthly amount, with gross and tax withholding figured in.
5) all ordinary and necessary expenses such as car payments, rent, mortgage, food, gas, insurance, clothing, utilities, church, etc, calculated as a monthly amount. For some yearly expenses, such as clothing or children's school needs, divide the estimated yearly budget by 12 to derive a monthly budget.
Prior to an individual bankruptcy consultation, potential clients and/or assisted persons are required to review notices and disclosures under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) similar to those contained in Form 201 which is available from the United States Bankruptcy Court at the following link:
http://www.uscourts.gov/rules/BK_Forms_08_Official/Form_201_110708.pdf
The Four Chapters of the Bankruptcy Code Available to Individual Consumer Debtors
Chapter 7: Liquidation
1. Chapter 7 is designed for debtors in financial difficulty who do not have the ability to pay their existing debts. Debtors whose debts are primarily consumer debts are subject to a “means test” designed to determine whether the case should be permitted to proceed under chapter 7. If your income is greater than the median income for your state of residence and family size, in some cases, creditors have the right to file a motion requesting that the court dismiss your case under § 707(b) of the Code. It is up to the court to decide whether the case should be dismissed.
2. Under chapter 7, you may claim certain of your property as exempt under governing law. A trustee may have the right to take possession of and sell the remaining property that is not exempt and use the sale proceeds to pay your creditors.
3. The purpose of filing a chapter 7 case is to obtain a discharge of your existing debts. If, however, you are found tohave committed certain kinds of improper conduct described in the Bankruptcy Code, the court may deny your discharge and, if it does, the purpose for which you filed the bankruptcy petition will be defeated.
4. Even if you receive a general discharge, some particular debts are not discharged under the law. Therefore, you may still be responsible for most taxes and student loans; debts incurred to pay nondischargeable taxes; domestic support and property settlement obligations; most fines, penalties, forfeitures, and criminal restitution obligations; certain debts which are not properly listed in your bankruptcy papers; and debts for death or personal injury caused by operating a motor vehicle, vessel, or aircraft while intoxicated from alcohol or drugs. Also, if a creditor can prove that a debt arose from fraud, breach of fiduciary duty, or theft, or from a willful and malicious injury, the bankruptcy court may determine that the debt is not discharged.
Chapter 13
1. Chapter 13 is designed for individuals with regular income who would like to pay all or part of
their debts in installments over a period of time. You are only eligible for chapter 13 if your debts do not exceed certain dollar amounts set forth in the Bankruptcy Code.
2. Under chapter 13, you must file with the court a plan to repay your creditors all or part of the money that you owe them, using your future earnings. The period allowed by the court to repay your debts may be three years or five years, depending upon your income and other factors. The court must approve your plan before it can take effect.
3. After completing the payments under your plan, your debts are generally discharged except for domestic support obligations; most student loans; certain taxes; most criminal fines and restitution obligations; certain debts which are not properly listed in your bankruptcy papers; certain debts for acts that caused death or personal injury; and certain long term
secured obligations.
Chapter 11
Chapter 11 is designed for the reorganization of a business but is also available to consumer debtors. Its provisions are quite complicated, and any decision by an individual to file a chapter 11 petition should be reviewed with an attorney.
Chapter 12
Chapter 12 is designed to permit family farmers and fishermen to repay their debts over a period of time from future earnings and is similar to chapter 13. The eligibility requirements are restrictive, limiting its use to those whose income arises primarily from a family-owned farm or commercial fishing operation.
This web site is designed for general information only. The information
presented at this site should not be construed to be formal legal advice nor the
formation of a lawyer / client relationship. |
