bankruptcy services in
nebraska and minnesota
want to discuss your debt relief options with our team?
chapter 7 bankruptcy
Chapter 7, often referred to as the "classic bankruptcy," involves getting rid of debt and retaining property through the use of laws called “exemptions”. Many people fear that they will lose all of their property. But it is a fear that rarely becomes reality. In most bankruptcy cases, you retain all of your property, including, but not limited to, family home, vehicles, furniture, and retirement accounts. What a great deal to get rid of all of your debt and retain all of your property!
chapter 7 is ideal for:
Individuals with significant unsecured debts and few assets.
Those who have experienced a major financial setback, such as a failed business or unexpected medical bills.
Individuals seeking a fresh start to put overwhelming debt behind them.
key features of chapter 7 bankruptcy:
Discharge of Unsecured Debts: Most unsecured debts, such as credit card debts and medical bills, are discharged, meaning you are no longer legally required to pay them. Some types of debt are not dischargeable. Bankruptcy does not eliminate alimony, child support, student loans, or most income tax debt.
Quick Process: Chapter 7 is typically faster than other types of bankruptcy, usually taking 4-6 months to complete.
chapter 7 bankruptcy pros:
Debt Relief: Provides a fresh start by discharging most unsecured debts.
No Repayment Plan: Unlike Chapter 13, there is no requirement to repay debts over time.
Protection from Creditors: With a Chapter 7 bankruptcy filed, you can stop a wage garnishment and other collection efforts, including those daunting creditor phone calls. By filing, you will stop creditors from harassing you so you can breathe easier while going through the process of discharging your debt.
chapter 7 bankruptcy cons:
Asset Liquidation: You may lose non-exempt assets, so consult with your attorney as to which assets this might include. This rarely happens.
Not for Everyone: Some individuals have too high of household income to qualify for Chapter 7 bankruptcy. We will evaluate whether you qualify.
chapter 13 bankruptcy
Chapter 13 bankruptcy, is a voluntary repayment plan or personal reorganization that allows individuals with regular income to create a repayment plan to pay off their debts over three to five years. It is like a court-supervised debt consolidation. You retain all of your property, including, but not limited to, family home, vehicles, furniture, and retirement accounts. In a Chapter 13 bankruptcy, you propose a plan on how you are going to repay your debts.
chapter 13 is ideal for:
Individuals with a steady income who can commit to a repayment plan.
Those who have significant secured debts, such as a mortgage or car loan, and want to avoid foreclosure or repossession.
Individuals seeking to protect their assets while managing their debt.
key features of chapter 13 bankruptcy:
Repayment Plan: Debtors propose a repayment plan to pay back all or part of their debts over a period of three to five years.
Debt Consolidation: Combines debts into one monthly payment.
Asset Protection: Allows debtors to keep their assets while repaying debts.
chapter 13 bankruptcy pros:
Bring mortgage and vehicle loans current: If you’ve fallen behind on your mortgage or vehicle loan, you can bring the payments current through your plan.
Debt Consolidation: Simplifies debt repayment through a single monthly payment.
You Don’t Always Pay 100% of Your Debt. In some situations, you repay some but not all of your debts. This is based upon your budget and value of assets.
chapter 13 bankruptcy cons:
Commitment: Requires a long-term commitment to a repayment plan.
No New Debt: You will have limited to no access to credit during the duration of your plan unless you ask the court for permission to do so.
chapter 11 bankruptcy
Chapter 11 bankruptcy, known as "reorganization bankruptcy," is primarily used by businesses and high-income individuals with substantial debts. Filing a Chapter 11 allows a business the opportunity to reorganize and restructure. Alternatively, through the Chapter 11 process, a business may find it most appropriate to liquidate, sell some of its business assets, or discontinue a struggling portion of its business operations.
chapter 11 is ideal for:
High-income individuals with substantial assets and debts.
Businesses looking to restructure debt while continuing operations.
Individuals with complex financial situations that require a tailored repayment plan.
key features of chapter 11 bankruptcy:
Debt Reorganization: Allows for the restructuring of debts and continuation of business operations or personal financial management.
Repayment Plan: Debtor proposes a repayment plan, which must be approved by the court.
Flexibility: Provides flexibility to manage complex financial situations and large debts.
chapter 11 bankruptcy pros:
Asset Retention: Debtors typically retain their assets while reorganizing their debts.
Business Continuation: Businesses can continue operations during the bankruptcy process.
Custom Repayment Plan: Flexibility to create a repayment plan that suits your financial situation.
chapter 11 bankruptcy cons:
Complex and Costly: More complex and expensive than other bankruptcy types due to the extensive court involvement and legal fees.
Lengthy Process: Can take several years to complete.