5137 Golden Foothill Parkway, Ste. 110
El Dorado Hills, CA 95762
(916) 789-9810
drmorris@morrislawgrp.com

8880 Cal Center Dr., Ste 400
Sacramento, CA 95826
(916) 789-9810
drmorris@morrislawgrp.com

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  • What is Bankruptcy?
  • What are the Different Chapters of Bankruptcy?
  • Which Chapter is Right for Me?
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  • What Happens After I File for Bankruptcy?
  • What are the Recent Changes to the Bankruptcy Laws?
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WHAT ARE THE DIFFERENT "CHAPTERS" IN BANKRUPTCY?

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is the liquidation chapter of the Bankruptcy Code. Chapter 7 bankruptcy cases are commonly referred to as "straight bankruptcy" or "liquidation" cases, and may be filed by an individual, corporation, or a partnership. Under chapter 7 bankruptcy laws, a trustee is appointed to collect and sell all property that is not exempt and to use any proceeds to pay creditors. In the case of an individual, the debtor is allowed to claim certain property exempt.1 In exchange for this, the debtor gets a discharge, which means that the debtor does not have to pay certain types of debts.2 Corporations and partnerships do not receive discharges. Consequently, any individuals legally liable for the partnership's or corporation's debts will remain liable. Therefore, individual bankruptcies may be required as well as the corporation or partnership bankruptcy.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is the debt repayment chapter for individuals with regular income whose debts do not exceed $1,441,875 ($360,475 in unsecured debts and $1,081,400 in secured debts), including individuals who operate businesses as sole proprietorships. It is not available to corporations or partnerships. Chapter 13 generally permits individuals to keep their property by repaying creditors out of their future income. Each chapter 13 bankruptcy debtor proposes a repayment plan which must be approved by the court. The amounts set forth in the plan must be paid to the chapter 13 trustee who distributes the funds for a percentage fee. Many debts that cannot be discharged can still be paid over time in a chapter 13 bankruptcy plan. After completion of payments under the plan, chapter 13 bankruptcy debtors receive a discharge of most debts.

Work with a Bankruptcy Attorney from Morris Law Group

At Morris Law Group, your experienced, professional bankruptcy attorney understands that the bankruptcy process can be a stressful and emotional period in your life. With over 28 years of Chapter 7 and Chapter 13 bankruptcy experience, you can count on your attorney to have in depth knowledge to analyze your options, explain the process in plain language, and provide you with choice so you can make an informed decision on whether to pursue bankruptcy or a number of different actions to get you the financial and debt relief you need.

To learn more about how Morris Law Group can assist you through the Chapter 7 bankruptcy or Chapter 13 bankruptcy process, please call us today at (916) 789-9810 or by filling out our contact form for a free and confidential debt analysis.

Chapter 7 Bankruptcy Lawyer | Chapter 13 Bankruptcy Attorney