Where bankruptcy is explained to every day people so that they understand how it may help them achieve debt relief
I am the founder of The Law Offices of Kimberly Berson. I have been practicing bankruptcy law for over twenty-five years. I also teach bankruptcy law and business law classes. I am passionate about educating my clients about their legal issues and making sure they understand the process. Too often, I have encountered people involved in a bankruptcy proceeding feeling overwhelmed and stressed because they were not properly advised about the procedure. When people are equipped with knowledge, they feel more secure and comfortable. I am committed to helping people understand bankruptcy and how it can help so they can feel less apprehension about the process and experience the relief they are seeking.
What is a Bankruptcy proceeding?
A bankruptcy case is a proceeding that is before a specialized federal court, the bankruptcy court, where the debtor, the individual or entity that has filed for bankruptcy, seeks debt relief through either a liquidation proceeding or a reorganization proceeding. A bankruptcy case is not like a lawsuit where you have an adversary. It is a equitable remedy where you are seeking to have the Court grant you a discharge of your debts or you are seeking to reorganize your debts through a plan. Learn more about bankruptcy cases through our blogs on this website,
What are the different types of bankruptcy cases?
There are two main types of bankruptcy proceedings- a liquidation proceeding or a reorganization proceeding. In a liquidation proceeding, the debtor's non-exempt assets are liquidated or sold and the proceeds are distributed to the creditors in the order set forth in the Bankruptcy Code. This is a chapter 7. In a chapter 7 case, many assets may be claimed exempt and in most cases, there are no non-exempt assets available for liquidation. In a reorganization proceeding, the debtor proposes a plan to pay back creditors. Reorganization cases are proceedings under chapter 13, chapter 11, chapter 12, chapter 9 and chapter 15 of the Bankruptcy Code. Learn more about the different proceedings by reviewing the blogs on this website.
Will I get to keep my assets if I file a chapter 7 ?
Most likely you will be able to keep your assets.When you file for bankruptcy you are allowed to claim certain property exempt from liquidation up to a certain amount. Most chapter 7 cases are cases where there will be no distribution to creditors because there are no non-exempt assets available to liquidate. Filing a bankruptcy petition commences the bankruptcy proceeding, On Schedule C of the petition, you are entitled to claim certain assets exempt under the law. What this means is the trustee that is appointed to administer the chapter 7 estate will not be able to sell property that is properly claimed exempt. This is why many people who file a chapter 7 case will be granted a discharge of debts while retaining their assets. Learn more about exemptions through this blogs on this website.
How does bankruptcy help with my debts?
Through a bankruptcy proceeding, a debtor may discharge certain debts that are dischargeable through the bankruptcy. Receiving a discharge of a debt means that you do not have a legal obligation to pay the debt. This means a creditor whose debt was discharged in the bankruptcy cannot take any steps to collect the debt during the bankruptcy and after the bankruptcy case is closed. No phone calls, no lawsuits, no collection letters. Learn more about what debts are dischargeable and when you may not be entitled to a discharge through additional blogs on this website.
