When you meet with Attorney Pleznac:
Attorney Pleznac will help you determine the kind of bankruptcy that best meets your needs:
Chapter 7 - Unsecured debts such as medical bills and credit cards are discharged. Clients most often keep their cars and homes by continuing to pay their mortgages and auto loans but have the option of discharging their car loans and mortgage. The vast majority of personal bankruptcies are Chapter 7 cases, but it is important to review your financial situation so that you select the bankruptcy chapter, or non-bankruptcy settlement, that fits your situation.
Chapter 13 - A three to five year repayment plan in which you can pay your debts in part or in full. You make payments to a U.S. Bankruptcy Trustee who makes payments to your creditors based on what you can afford, although most taxes, car loans and house payments must be paid in full.
Chapter 12 – Similar to chapter 13, but applies only to family farms.
Chapter 11 - This is mostly used by businesses and is sometimes called a “Business Re-organization”. Your business may continue to operate under chapter 11, but your creditors and the Court must approve a repayment plan for your debts. There is no trustee unless the Judge decides that one is necessary; if a trustee is appointed, the trustee takes control of your business and property. Individuals can file Chapter 11 but usually Chapter 13 is better suited for individuals.
What is a Bankruptcy Discharge?
This is generally considered the end of your case. A discharge is a Court order stating you do not have to pay most of your debts. The discharge only applies to the debts that occurred before the date you filed your case. A debt cannot be discharged if it is not listed in your bankruptcy case. Also, if the Judge finds that you received money or property by fraud, that debt may not be discharged. The Judge can also deny your discharge if you do something dishonest in connection with your bankruptcy case, such as destroy or hide property, falsify records, or lie, of if you disobey a Court order. You can only receive a chapter 7 discharge every eight years.
What debts cannot be discharged?
Some debts cannot be discharged. Debts that cannot be discharged are:
- most taxes;
- child support;
- alimony;
- most student loans;
- court fines and criminal restitution; and
- personal injury damages caused by driving drunk or under the influence of drugs.
What is a Reaffirmation Agreement?
A Reaffirmation agreement is an agreement with a creditor/lender to continue paying for a car or a home. Attorney Pleznac works with you and your lenders to write the terms of these agreements.