What is Bankruptcy?

Bankruptcy is a legal proceeding in which a person who owes money (the debtor) can be permanently released from most debts. Bankruptcy is a civil, not a criminal, court proceeding. As a debtor, you do not forfeit your civil and constitutional rights by filing a bankruptcy.

What are the common forms of bankruptcy?

Chapter 7—Liquidation is the most common bankruptcy. Most debts are discharged, and you must turn over all non-essential luxury assets, if any, to the bankruptcy trustee (the person appointed by the bankruptcy court to oversee your case). The trustee will sell the non-essential property to pay at least some money to your creditors. A Chapter 7 bankruptcy may be filed every eight years.

Chapter 13—Payment Plan Bankruptcy. Chapter 13 bankruptcies can be more suitable for persons with regular income or certain assets. You can stop foreclosures and repossessions by forcing creditors to accept adjusted payments for three-to-five years. You make payments to the trustee, who pays your creditors under the terms of the plan. Many debts that cannot be discharged under Chapter 7 bankruptcy can be discharged in a Chapter 13 bankruptcy, including certain taxes, and debts arising from fraud. A Chapter 13 bankruptcy may be filed almost any time a Chapter 7 bankruptcy is not pending.

What if my questions have not been answered?

Because bankruptcy is a complex procedure, we understand that you have many questions about the process. Our bankruptcy worksheet has many common questions that Mr. Brown will ask in preparation for filing your petition.

Click here for the bankruptcy worksheet.

Please fill in the worksheet prior to meeting with Mr. Brown. This will give you more time to ask further questions during your free consultation.

If you wish to ask questions before your free consultation, please call us at 503-224-4124, and you will see why people have trusted Kelly K. Brown since 1983 to help them get a fresh start. We look forward to assisting you!