Consumer Bankruptcy

Working For You

Certified Specialists

We understand your problems and will fight to provide you and your family well-deserved peace of mind. The attorneys at BBF include Board Certified Specialists in Consumer Bankruptcy that are highly qualified to advise clients on whether a bankruptcy filing is necessary, what type of bankruptcy filing is most advantageous, and what, if any, actions should be taken prior to a bankruptcy filing. They will listen to your story, and at a minimum, you will be armed with the information you need to make an educated decision for yourself and your family.

Consumer Bankruptcy

What Does A Typical Case Look Like?

Below are general descriptions of the types of Consumer Bankruptcy cases — Chapter 7 and Chapter 13. However, if you would like to review your situation and discuss your options with a Board Certified Consumer Bankruptcy Specialist, please contact BBF to schedule your one-on-one consultation. Our team will do our best to accommodate your work or family schedule, including conducting the consultation over the phone at a time that works for you. At BBF, all Consumer Bankruptcy consultations are absolutely free.

BBF Lawyer Discussing Consumer Bankruptcy On Phone
BBF Lawyer On The Phone About Consumer Bankruptcy

Consumer Bankruptcy

What Does A Typical Case Look Like?

Below are general descriptions of the types of Consumer Bankruptcy cases — Chapter 7 and Chapter 13. However, if you would like to review your situation and discuss your options with a Board Certified Consumer Bankruptcy Specialist, please contact BBF to schedule your one-on-one consultation. Our team will do our best to accommodate your work or family schedule, including conducting the consultation over the phone at a time that works for you. At BBF, all Consumer Bankruptcy consultations are absolutely free.

BBF Client Checking Consumer Bankruptcy Vertical

Chapter 7 Bankruptcy

In a Chapter 7 bankruptcy, an individual agrees to trade the equity in his or her property for relief from his or her debt. This is accomplished through the filing of Chapter 7 bankruptcy petition in which an individual is required to make certain disclosures, including the nature and value of his or her property interests. In addition, individuals who file for Chapter 7, with limited exceptions, must complete a formulaic calculation of income and expenses known as the “Means Test,” which gauges whether an individual has sufficient income to repay at least some of his or her debts. If the Means Test with respect to a particular debtor results in he or she being ineligible to file a Chapter 7, the debtor may be limited to Chapter 13 bankruptcy or non-bankruptcy alternatives.

When the petition is filed, all creditors are prohibited from attempting to collect prepetition debts from the debtor or the debtor’s property. At the same time, a Chapter 7 Trustee is appointed to administer the bankruptcy case, a substantial part of which is reviewing the debtor’s petition to determine if there is any equity in property that could be sold/realized and distributed to creditors. Importantly, a debtor is allowed to claim certain property as exempt, meaning free from the claims of creditors and the Chapter 7 Trustee. Frequently, no property is liquidated in a Chapter 7, as most debtors are able to exempt and protect all of their property. If the trustee is unable to liquidate any of a debtor’s property, the case will stay open around four to five months, and then the Bankruptcy Court will enter a Discharge Order, which eliminates most of the debts that burden a typical consumer, and soon thereafter, the Chapter 7 bankruptcy case will be closed.

The above description is merely a nutshell version of an average Chapter 7 bankruptcy, and without proper advice and counsel, a Chapter 7 bankruptcy can have pitfalls that can cause a debtor time, money, and stress. If you would like to discuss your options with a Board Certified Consumer Bankruptcy Specialist, please contact BBF to schedule your free one-on-one consultation

BBF Lawyer Using A Calculator Vertical

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is generally for individuals who have regular income that will allow them to propose a repayment plan, detailing which creditors (and how much) they are proposing to repay. The repayment plans range from three to five years, depending on the facts of each case. The monthly plan payment is made to a Chapter 13 Trustee, who then disburses the funds to creditors according to priorities of the Bankruptcy Code and provisions of the repayment plan.

In addition to being the only option for those ineligible for a Chapter 7 bankruptcy, there can be numerous advantages to filing a Chapter 13 bankruptcy, including, but not limited to, the following:

  • You can save your home from foreclosure or your vehicle from repossession and use the repayment plan to catch up your delinquency over a period of time, rather than paying the entire amount at once, as many creditors demand.
  • You may be able to substantially reduce your monthly payments on secured debts such as auto, furniture, or other secured loans, by paying them over the life of the repayment plan.
  • You can keep property, even property with unexempt equity, when the same property would have been sold in a Chapter 7.
  • You can choose to surrender property to certain secured creditors while continuing to pay others, such as auto loans and mortgages.
  • If you have recent taxes that will not be discharged, you are able to repay them over a set period of time, which in many cases, allows for a substantially lower monthly payment than otherwise available.
  • Although each case is different, in many cases the total amount you will repay your general unsecured creditors, such as credit cards, medical bills, and personal loans, will be a fraction of what was owed, and when you complete your repayment plan, any such unsecured debts not repaid through the plan will be discharged.
BBF Client Checking Consumer Bankruptcy

Chapter 7 Bankruptcy

In a Chapter 7 bankruptcy, an individual agrees to trade the equity in his or her property for relief from his or her debt. This is accomplished through the filing of Chapter 7 bankruptcy petition in which an individual is required to make certain disclosures, including the nature and value of his or her property interests. In addition, individuals who file for Chapter 7, with limited exceptions, must complete a formulaic calculation of income and expenses known as the “Means Test,” which gauges whether an individual has sufficient income to repay at least some of his or her debts. If the Means Test with respect to a particular debtor results in he or she being ineligible to file a Chapter 7, the debtor may be limited to Chapter 13 bankruptcy or non-bankruptcy alternatives.

When the petition is filed, all creditors are prohibited from attempting to collect prepetition debts from the debtor or the debtor’s property. At the same time, a Chapter 7 Trustee is appointed to administer the bankruptcy case, a substantial part of which is reviewing the debtor’s petition to determine if there is any equity in property that could be sold/realized and distributed to creditors. Importantly, a debtor is allowed to claim certain property as exempt, meaning free from the claims of creditors and the Chapter 7 Trustee. Frequently, no property is liquidated in a Chapter 7, as most debtors are able to exempt and protect all of their property. If the trustee is unable to liquidate any of a debtor’s property, the case will stay open around four to five months, and then the Bankruptcy Court will enter a Discharge Order, which eliminates most of the debts that burden a typical consumer, and soon thereafter, the Chapter 7 bankruptcy case will be closed.

The above description is merely a nutshell version of an average Chapter 7 bankruptcy, and without proper advice and counsel, a Chapter 7 bankruptcy can have pitfalls that can cause a debtor time, money, and stress. If you would like to discuss your options with a Board Certified Consumer Bankruptcy Specialist, please contact BBF to schedule your free one-on-one consultation

BBF Lawyer Using A Calculator Horizontal

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is generally for individuals who have regular income that will allow them to propose a repayment plan, detailing which creditors (and how much) they are proposing to repay. The repayment plans range from three to five years, depending on the facts of each case. The monthly plan payment is made to a Chapter 13 Trustee, who then disburses the funds to creditors according to priorities of the Bankruptcy Code and provisions of the repayment plan.

In addition to being the only option for those ineligible for a Chapter 7 bankruptcy, there can be numerous advantages to filing a Chapter 13 bankruptcy, including, but not limited to, the following:

  • You can save your home from foreclosure or your vehicle from repossession and use the repayment plan to catch up your delinquency over a period of time, rather than paying the entire amount at once, as many creditors demand.
  • You may be able to substantially reduce your monthly payments on secured debts such as auto, furniture, or other secured loans, by paying them over the life of the repayment plan.
  • You can keep property, even property with unexempt equity, when the same property would have been sold in a Chapter 7.
  • You can choose to surrender property to certain secured creditors while continuing to pay others, such as auto loans and mortgages.
  • If you have recent taxes that will not be discharged, you are able to repay them over a set period of time, which in many cases, allows for a substantially lower monthly payment than otherwise available.
  • Although each case is different, in many cases the total amount you will repay your general unsecured creditors, such as credit cards, medical bills, and personal loans, will be a fraction of what was owed, and when you complete your repayment plan, any such unsecured debts not repaid through the plan will be discharged.

Consumer Bankruptcy

An Important Note

Again, the above is offered only as a summary and does not explain all of the nuanced considerations in deciding whether to file a bankruptcy case or what chapter is most advisable in a particular case. These are the issues that the Board Certified Consumer Bankruptcy Specialists at BBF are equipped to identify, explain, and resolve. We would be honored if you would allow our attorneys to advise you of your options, whether or not bankruptcy is ultimately the answer for you.