Richmond-BankruptcyThe declaration of bankruptcy is part and parcel of the U.S. Constitution and the most fundamental laws of our country. From the time our nation was founded, the lawmakers agreed that measures had to be taken to protect those who suffered economic loss, and could not continue to pay their debts. They wanted to safeguard citizens from the abuses that such people had suffered in Europe.

There is no stigma attached to declaring bankruptcy. Corporations fail, banks fail, and their shareholders pick themselves up and start new companies. Economic loss can happen to all of us. Even the wealthy have been known, in the midst of complex divorce proceedings or other mishaps, to declare bankruptcy.

One should bear in mind that a declaration of bankruptcy, however, is a serious decision which will affect your ability to do business in the future. You should consult a bankruptcy lawyer before making a final decision, and you should consider very carefully before deciding.

The most basic form of bankruptcy is Chapter 7 liquidation. In this form of bankruptcy, sometimes referred to as “straight” bankruptcy, all the assets of the debtor are considered by the court in an effort to make whatever restitution to the creditors may be possible. However, once the decree of bankruptcy is recorded, all debts are forgiven. The individual starts afresh, with all of the old debts cancelled. The individual will, of course, face issues in terms of doing business again and getting credit.

Plano-Bankruptcy-AttorneyThere is another form of bankruptcy called Chapter 13 bankruptcy. Under Chapter 13, the debtor’s income is reviewed by the court, and a plan is worked out in which payment is made to certain creditors over a period of time. The debtor’s income is analyzed by the court using various tests to determine what the individual can actually afford. Based on the court’s review, an amount will be set aside for monthly payments. That amount may not include payments to unsecured creditors such as credit card companies and medical bills. However, the Chapter 13 plan must always pay priority claims, such as domestic support obligations, child support and tax debt.

It’s clear that determining whether to declare for bankruptcy, and which kind of bankruptcy to choose, is not an easy decision. We can help you work out the best solution. We are accredited by the Better Business Bureau, and our work is Federal Trade Commission compliant. This means that we work to help you, and only when the right solution for you is found, do we take our fees. We know every person we help has different circumstances, so we develop unique plans and solutions to fit each debt situation.