Chapters 7 and 13

If you are carrying a tremendous amount of debt and you are struggling with creditors or collection agencies or feeling a sense of shame about your financial situation, you do have options.

Bankruptcy is a legal process in which an individual who is unable pay his or her debt can be relieved of paying those debts. When you file for bankruptcy petition, the Court enters an "automatic stay" which is an injunction that immediately stops most actions taken by creditors including, but not limited to, lawsuits, foreclosures, harassing phone calls, collection letters, and all other collection activity."

J. Eric Rottinghaus, Attorney at Law, offers creative bankruptcy law solutions to individuals seeking meaningful debt relief.

Chapter 7

Chapter 7 is a "liquidation" or "straight" bankruptcy. Debtors are required to surrender property exceeding limits called "exemptions." The property is sold to pay creditors. Under chapter 7 in a bankruptcy case, the person files a petition to ask the court to erase (discharge) debts. In exchange for this, the person must give up property, except in cases in which property is exempt. Property that is exempt can be kept by the person.

Chapter 13

Chapter 13 is a debt adjustment. Debtors are required to file a plan to pay all or a portion of their debts from current income. A person filing chapter 13 bankruptcy submits a plan detailing how some of existing debts will be paid over a 3-5 year period. Chapter 13 bankruptcies allow the person to keep valuable property - including homes and cars, if the person is able to make the payments that the law requires to be made to creditors. The person needs to have enough income in chapter 13 to pay for necessities and to keep up with the required payments as they become due.

Please contact J. Eric Rottinghaus, Attorney at Law, online, or by phone at (859) 431-0529, to schedule an initial consultation.

Pursuant to 11 U.S.C. 528, we are required to state that we are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.