The Law Office of EBERE N. EKECHUKWU & ASSOCIATES, P.C. represents individuals and businesses in Chapters 7, 11, and 13 bankruptcy proceedings. If you are suffering from severe financial burden and debt, bankruptcy filing can be the solution for you and in most cases for individuals; you may qualify under Chapter 7 or Chapter 13.
Chapter 7 Bankruptcy
If you qualify for Chapter 7 bankruptcy the majority of your consumer debt will be automatically discharged and gives you the opportunity begin a new financial journey. Filing Chapter 7 bankruptcy will do the following:
- Wipes out consumer debt
- Immediate halt of utility shut-offs and wage garnishment
- Puts a stop to home foreclosure actions
- Elimination of certain IRS debt
- Discharge of medical bills
- Puts a stop to creditor calls and messages
- A halt on pending lawsuits
- Stops license suspensions
- Stops garnishments and wage assignments
Chapter 13 Bankruptcy
If you do not qualify for Chapter 7 bankruptcy, maybe because you have too many assets or make too much money and you have the following:
- Behind in your Mortgage and/or Auto Payment
- Foreclosure or Sheriff Sale Pending
- Over-Financed Vehicles
- High Interest Credit Cards and Loans
- Payday Loans & Wage Deductions
- Lawsuits & License Suspension & Parking Tickets
Chapter 13 bankruptcy may be an option for you. You may be considered for Chapter 13 if you earn a steady paycheck, whether through a job, or running your own business. Chapter 13 Bankruptcy will help you re-organize your bills, stop foreclosure, repossessions, garnishments and high credit card interest. Chapter 13 bankruptcy allows a debtor to pay off a portion of their debt in one monthly payment within 3-5 years and during the 3-5 year period; the interest owed on the unsecured debt can often be paid back at 0%.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is intended primarily for the reorganization of businesses with heavy debt burdens, most often associated with corporations but available to small businesses as well. Although it’s uncommon, consumers may file for Chapter 11 in some rare instances. Chapter 11 allows the debtor to propose a plan for profitability post-bankruptcy, which may include trimming costs and seeking new sources of revenue or income, while temporarily holding creditors at bay.
Chapter 11 for Small Businesses: Chapter 11 bankruptcy reorganization is commonly associated with larger corporations but it is available to qualifying small businesses. A “small business” is one with fewer than 500 employees, as defined by the Small Business Administration; as such, “small businesses” make up the vast majority of Chapter 11 filings. But they don’t always remain in Chapter 11. Chapter 11 bankruptcies often get dismissed and converted to Chapter 7, typically because the court decides the business has little or no chance of becoming profitable. Partnerships, which have very few bankruptcy options, may file for Chapter 11 if the business entity has a chance of surviving and profiting on its own.
Chapter 11 for Consumers: Chapter 11 bankruptcy reorganization was originally intended for businesses, but the 1991 U.S. Supreme Court case Toibb v. Radloff held that non-business, individual consumers also are eligible. This is exceedingly rare, though. Only 0.1 percent (or 1 out of 1,000) consumer bankruptcies filed in 2009 were Chapter 11, compared to 71.4 percent Chapter 7 and 28.5 percent Chapter 13 filings. This unusual route usually is pursued by individuals who still have substantial personal earning potential but whose debts exceed the limits set forth by Chapter 7 and Chapter 13. A typical non-business Chapter 11 bankruptcy filer might be a celebrity who just got in over his or her head with bad investments but who conceivably still has earning potential through product endorsements, for example. Chapter 11 is generally considered more debtor-friendly than other types of bankruptcy, including the ability to “cram down” certain forms of debt. This means the court pushes through a plan over the objections of some creditors.
Contact The Law Office of EBERE N. EKECHUKWU & ASSOCIATES, P.C. today at (312) 362-9844 and we will help you fight for to keep your home, get you the relief you deserve, stop the harassment from creditors, and set you on your way to clean financial future.