Chapter 7 is the chapter that provides the quickest relief from your debts. This chapter wipes away all dischargeable debts, such as credit cards, medical bills, personal loans, and deficiencies from repossession or foreclosure. Our bankruptcy attorney can help you!

This chapter is mostly for businesses that can stay in business but need some immediate relief from their creditors. The ability to negotiate with creditors and get better loan terms is possible under this chapter. Contact our bankruptcy attorney today!

In August of 2019, President Donald J. Trump signed into law the Small Business Reorganization Act of 2019 (SBRA). The Act (SBRA) became effective in February of this year. This Act, which was passed long before we knew what COVID-19 was, attempted to cure some of the difficulties that small businesses often encounter trying to reorganize under Chapter 11. Because of the overwhelming requirements and disclosures required of a traditional Chapter 11 case, the process was, in many small business cases, unwieldy and infeasible due to the circumambient costs and professional fees which result in a traditional Chapter 11 case.

The SBRA is found in the United States Code Title 11 in sections 1181- 1195 (11 USC 1181-1195). This is now commonly known as Subchapter V of the bankruptcy code. This Act of Congress turned out to be fortuitous, as Chapter V may indeed become a vital and a most useful tool in the saving of the heart and soul of America's economy, the small business.

Much like the LLC (which is a hybrid entity somewhere between a corporation and a partnership) was created to allow an easier and less formal platform to operate a business, Subchapter V is somewhere between Chapter 11 (Big Business Reorganization) and Chapter 13 (Individual Debtor Reorganization) allowing for a simpler and less formal path to relief from creditors and debilitating debt.

The CARES Act expanded the relief of the Act by greatly expanding the class of Small Businesses that can now take advantage of the Act's benefits for a year (Feb 2020 - Jan 2021). If a small business has aggregate debts of less than $7,500,000.00 (seven million five-hundred dollars), which is made up of primarily commercial debts (not personal consumer debts like cars, boats), then it could seek to take advantage of the Act.

Subchapter V cuts down on numerous complications such as creditor committees, disclosure statements, impaired class votes, certain administrative claims, and coerced creditor filed plans, making it much more attractive to small businesses in trouble. The elimination of these processes allows for a streamlined case and a significantly lower cost.

If your small business is experiencing creditor pressure that may impair its ability to operate and rebound, you may want to speak to our bankruptcy attorney about the costs and benefits of this new lifeline of relief.

This is the individual reorganization chapter. Typically, some debt is repaid, but only based on what you can afford. This chapter can give you up to five years to cure arrearages to save your house or car. According to the U.S. Courts, individuals with less than $526,700 in unsecured debts are eligible for Chapter 13 relief. Our bankruptcy attorney can help!

All debts and property must be listed whether you are keeping it or not. We will use your

exemptions to protect your equity. You can keep your house and/or car as long as you

continue to make your regular scheduled payments and keep them insured. Remember,

every case is unique so if there are any exceptions to your case the attorney will discuss that

with you accordingly. 

In some cases, you can qualify for a home mortgage three [3] to twelve [12] months after

your Chapter 7 discharge. 

In most cases you cannot apply for credit with creditors you have discharged for seven [7] to

ten [10] years

Ten [10] years, but don't let that scare you, you can get new credit inside of ten [10] years.

The credit bureau reports it there the same length of time that any other debt would stay

there but you will not owe anyone except the debt that you have reaffirmed. That means that

your income to debt ratio should be improved approximately 80%. Creditors only want to

know if you can pay them and whether any other old and outstanding debt will affect their

ability to collect on the new debt. 

Normally it takes 120 days to be discharged in a Chapter 7 and thirty-six [36] to sixty [60]

months in a Chapter 13 from the date we file your case

Immediately after they receive your Bankruptcy Case Number. We will deal with them from

the day you hire us. You must give them our telephone number and refer them to contact us

for further information. If you make regular scheduled payments your case will not be

denied status. Otherwise pay the balance in full for a Bankruptcy Case Number within seven

[7] days from the day you sign your Retainer Agreement

If you get a wage assignment, have been garnished or if you are served with a Summons call

us immediately. Once we file your Bankruptcy Petition all garnishments must stop! 

You would lose it to your creditors. You must disclose any and all of this important

information to our office.

This is not a problem, and we regret we could not help you. You must immediately send a

letter of termination to Dwyer Law, Attention: Bankruptcy Department and we will not

charge any additional fees. However, per your Client Declaration Agreement, ALL fees paid

to that point are NON-REFUNDABLE.