Bankruptcy

If you are like most people facing financial hardships, you have already exhausted every resource available to you before considering a bankruptcy filing. Although the first step may be difficult, it will be the step to help you restore your future credit and financial life. The information below has been provided for information purposes only. Please contact us at 302-672-7217 or 302-421-9101 to schedule a free consultation with one of our attorneys. The free consultation will answer your specific questions and identify whether you may qualify for a Chapter 7 or a Chapter 13 bankruptcy petition. We look forward to helping you get your financial life back on track.

A Chapter 7 bankruptcy can provide you protection from your creditors and a “fresh start” quickly. It is commonly referred to as “liquidation” bankruptcy. However, our experienced attorneys are here to make sure that your property is not liquidated during this process. Most individual that file Chapter 7 will not lose any of their property. Although you are not required to use an attorney to file a bankruptcy petition, the process is complex. If the forms are not filled out correctly, the trustee may attempt to sell your property or dismiss your case.

Creditors are required to stop contacting you directly and cease all collection attempts without further court permission.  A bankruptcy filing will also immediately stop the following actions from continuing:

Before you can file a Chapter 7 or a Chapter 13 petition you are required to complete a consumer credit counseling interview. Our office will provide you with the information to complete this interview online, over the phone, or in person.  The credit counseling interview should take you approximately 30-60 minutes to complete.  Once the interview is completed, you will be provided with a certificate to be filed with your bankruptcy petition.  The certificate is only good for 180 days from the date it is issued.  Therefore, we suggest that you not complete the counseling interview until your petition is ready to be filed.  If the certificate expires, you will have to retake the counseling interview.  A second education class is required after your bankruptcy petition has been filed.  Our attorneys will provide you additional information regarding the second education requirement.

After your Chapter 7 is filed, you will be required to attend a meeting with a court-appointed trustee.  The meeting is called a 341 Meeting of Creditors.  Although creditors are permitted to attend these meetings, it is rare that they actually do. Our attorneys will prepare you for this meeting prior to the scheduled meeting date.  We will also attend the meeting with you. In general, the meeting with the trustee takes about 10 minutes.  However, all cases are scheduled on the hour so we will not know if your case will be the first or last case called that hour.  We suggest that you set aside at least 1 hour to attend this meeting.  Unless our attorneys advise you otherwise, this is the only official meeting you will need to attend.

At the end of your Chapter 7 the U.S.  Bankruptcy Court will issue you a Discharge Order.  You are now on your way to a fresh financial start.  The Discharge signifies that you have successfully completed the Chapter 7 bankruptcy.  The dischargeable creditors included in your petition are not permitted to continue collection efforts against you.  It is important to note that some debts are not dischargeable.  Our experienced attorneys will discuss which, if any, debts are not discharged as part of your Chapter 7 bankruptcy petition.

Now that you have a general overview of a Chapter 7 bankruptcy, we urge you to schedule a free consultation to review and discuss your specific questions.  We have three convenient locations to serve you better.  Please contact us at 302-672-7217 or 302-421-9101.

While Chapter 7 is the most common type of bankruptcy filing, a Chapter 13 petition can provide you a plan to reorganize your debts that are causing you a hardship.  This plan of reorganization may take place over a 3-5 year period.  If you are struggling to stay current on your mortgage, car payment or owe income taxes to the Internal Revenue Service or the State of Delaware, then a Chapter 13 bankruptcy may be a better option for you.  In some instances, you may not qualify for a Chapter 7 because your income or assets are too high.  If that is the case, then a Chapter 13 is a good option for you.  Call today to schedule a free consultation with one of our attorneys to determine if Chapter 13 is right for you.

During difficult times you may have fallen behind on your mortgage and car payments.  Although your intention is to keep your home and cars, it may be difficult to become current with these secured debts on your own.  A Chapter 13 petition allows you to take the mortgage arrears, the balance of your car payment and any taxes that you may owe and spread them out over a 3-5 year period.  You will be required to resume your regular mortgage payment during this process.  The ultimate goal of a Chapter 13 bankruptcy petition is to create financial ease by resuming your regular mortgage payment directly and consolidating your remaining bills into one monthly payment.  This monthly payment, also referred to as your Plan payment, can be voluntarily deducted from your wages or set up as an automatic bill pay through your bank.

Creditors are required to stop contacting you directly and cease all collection attempts without further court permission.  A bankruptcy filing will also immediately stop the following actions from continuing:

At the end of your Chapter 13, the U.S. Bankruptcy Court will issue you a Discharge Order.  You are now on your way to a fresh financial start.  The Discharge signifies that you have successfully completed the Chapter 13 bankruptcy.  The dischargeable creditors included in your petition are not permitted to continue collection efforts against you.  It is important to note that some debts are not dischargeable.  Our experienced attorneys will discuss which, if any, debts are not discharged as part of your Chapter 13 bankruptcy petition.

Now that you have a general overview of a Chapter 13 bankruptcy, we urge you to schedule a free consultation to review and discuss your specific questions.  We have three convenient locations to serve you better.  Please contact us at 302-672-7217 or 302-421-9101.

The 341 Meeting of Creditors is a meeting that you are required to attend with your attorney. The meeting is conducted by a bankruptcy trustee. The trustee will ask you questions about your petition to make sure that you understand the bankruptcy process. Although creditors are permitted attend the meeting, they seldom do so.

The 341 Meeting of Creditors is scheduled approximately 30 days after your petition has been filed. The meeting itself will take about 10 minutes. However, we will not know if your case is the first or last case called in the specified hour. We suggest that you put aside at least an hour to attend this meeting. This is the only meeting you will have to attend unless your attorney tells you otherwise.