Combs Law Group

The worldwide recession has left few people untouched. Bankruptcy is on the minds of many people. Those who have lost jobs or who have been devastated by failed investments may benefit from the fresh start that bankruptcy can offer. What benefit is bankruptcy for the individual who has relatively high income, but who is under a crushing burden of debt and also under daily assault from creditors?
Discussions of bankruptcy inevitably turn to an explanation of the various “chapters” of the bankruptcy code and their uses. The Bankruptcy Code is organized into Chapters and is found in Title 11 of the U.S. Code. The most commonly used Chapters of the code are Chapter 7, 11 and 13.
Chapter 7 is the most used of the bankruptcy chapters. It is referred to as a “liquidation” and is generally available to all debtors subject to certain income guidelines. Generally, the debtor in a Chapter 7 bankruptcy is able to retain most of their real and personal property through “exemptions” provided in the bankruptcy code. Any property subject to liens will be either returned to the creditor or will be kept by the debtor. If a debtor decides to keep property subject to a lien, they must continue to make monthly payments until the lien is satisfied. Chapter 7 cases are usually completed in a few months and allow the debtors to quickly begin the process of rebuilding their credit.

Continue Reading

With a slumping economy and home foreclosures at record highs, homeowners are concerned about losing their homes and searching for options to keep from their home. Many are faced with the reality that their home has depreciated to the point that it is worth substantially less –in some cases half what they owe. A chapter 13 bankruptcy can keep you in your home, and, if you are paying on a second mortgage, can significantly reduce the amount you actually pay for your home.

Continue Reading