American Bankruptcy

The purpose of this notice is to acquaint you with chapters 7 & 13 of the Federal Bankruptcy Code under which you may file a bankruptcy petition and in which American Bankruptcy can competently assist you.

Bankruptcy law is complicated and not easily described. Therefore you may wish to seek the advice of an attorney to learn of your rights and responsibilities under the law should you be possessed of any doubts at to whether, or not, to file a petition with the court.

Neither the judge nor the court's employees may provide you with legal advice. But if you have decided that either Chapter 7 or Chapter 13 is the course for you, American Bankruptcy may be the most efficient and economical means by which to unburden yourself and to renew your financial life.

Chapter 7; Liquidation

1. Chapter 7 is designed for debtors in financial difficulty who do not have the ability to pay their existing debts.

2. Under Chapter 7 a trustee takes possession of all your non-exempt property. You may claim certain of your property, such as a certain portion of your primary residence; your vehicle, up to a certain value according to the governing statutes in your jurisdiction; tools of your trade; necessary clothing; certain personal possessions; and more; as exempt under the governing laws of your state or district. The trustee liquidates the non-exempt property and uses the proceeds to pay your creditors according to the priorities set forth in the bankruptcy code.

3. The purpose of filing a Chapter 7 case is to obtain a discharge of your existing, dischargeable, debts.

4. There are some debts that are not dischargeable under the bankruptcy code, such as; certain taxes, alimony and support payments, criminal restitution, and debts for personal injury caused by driving while intoxicated from alcohol or drugs.

Chapter 13;

1. Chapter 13 is designed for individuals with regular income who are temporarily unable to pay their debts, but would like to pay them in installments over a period of time.

2. Under Chapter 13 you must file a plan with the court to repay your creditors all or part of the money that you owe them, using your future earnings. The usual period of time allowed by the courts is three years, but under some circumstances, the court may extend the period for up to five years.

3. Unlike Chapter 7, under Chapter 13 you may keep all your property, both exempt or non-exempt, as long as you continue to make payments under your court-approved plan.

4. After completion of payments under your plan, your debts are discharged, except for certain non-dischargeable debts such as enumerated above under the information for Chapter 7. Long-term secured debts such as mortgages and other purchase-contract agreements which extend beyond the term of your chapter 13 plan continue in effect just as before filing the Chapter 13 bankruptcy

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For those who feel you are qualified to prepare your own bankruptcy petition, just CLICK HERE to check out our $9.95  American Bankruptcy Do-It-Yourself Bankruptcy Kit. This kit has been prepared by us and has all the forms you may need to prepare and file your own bankruptcy petition anywhere in the United States.

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