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Bankruptcy Law

Chapter 7 and Chapter 13 Bankruptcy

Bankruptcy Attorneys

ALCORN SAGE SCHWARTZ & MAGRATH, can assist you in filing bankruptcy, either as an individual, husband and wife, or a small business. There are two types of bankruptcies used by small businesses, Chapter 7 and Chapter 13.

Chapter 7 Bankruptcy is a process that may eliminate most unsecured debt. Most of the time, unsecured debt includes: credit cards, medical bills, most personal loans and judgments. In addition to getting rid of your debt in a Chapter 7 Bankruptcy, you can typically keep your property as long as there is no significant equity in your property. You may be able to keep your home, your car, and your personal belongings by filing a Chapter 7 Bankruptcy.

Chapter 13 Bankruptcy is a debt repayment plan through which you consolidate your debts and make a payment on your debt over a three to five year period. While you are in the Chapter 13 debt repayment plan, creditors cannot contact you and cannot collect from you, and are required by Federal Court to adhere to the terms outlined in your Chapter 13 plan. In order to qualify for a Chapter 13 Bankruptcy, most of the time, you are required to be working or have a consistent source of monetary income for your payment plan to be approved by the Court.

If your home is presently in foreclosure, a bankruptcy filing may stop the foreclosure at any time prior to the sale. ALCORN SAGE SCHWARTZ & MAGRATH, can assist in negotiating a payment plan with your various creditors through different debt relief programs with which our lawyers are familiar.


Contact ALCORN SAGE SCHWARTZ & MAGRATH, for assistance.


Required Federal Disclosures

Our office is required to give you certain disclosures before we can give you legal advice about bankruptcy.

The Law Office of Alcorn Sage Schwartz & Magrath is a federally designated Debt Relief Agency under the United States bankruptcy laws. Our attorneys assist people with finding solutions to their debt problems, including, where appropriate, assisting them with the filing of petitions for relief under the United States Bankruptcy Code.

Required Disclosure Pursuant to 11 U.S.C. §527(A)(2)
All information that you are required to provide with a bankruptcy petition and thereafter during a bankruptcy case, is required to be complete, accurate and truthful.

All of your assets and liabilities are required to be completely and accurately disclosed in the documents filed to commence your case, and the replacement value of each asset must be stated in those documents where requested after reasonable inquiry to establish such value.

Your current monthly income, monthly expenses, and in a case under Chapter 13, disposable monthly income are required to be stated after reasonable inquiry.

Information that you provide during your case may be audited and failure to provide requested information may result in the dismissal of your case or other sanction, including a criminal sanction.

Required Disclosure Pursuant to 11 U.S.C. §527(B)

If you decide to seek bankruptcy relief, you can represent yourself, you can hire a bankruptcy attorney to represent you, or you can get help in some localities from a bankruptcy petition preparer who is not an attorney. THE LAW REQUIRES AN ATTORNEY OR BANKRUPTCY PETITION PREPARER TO GIVE YOU A WRITTEN CONTRACT SPECIFYING WHAT THE ATTORNEY OR BANKRUPTCY PETITION PREPARER WILL DO FOR YOU AND HOW MUCH IT WILL COST. Ask to see the contract before you hire anyone.

The following information helps you understand what must be done in a routine bankruptcy case to help you evaluate how much service you need. Although bankruptcy can be complex, many cases are routine.

Before filing a bankruptcy case, either you or your bankruptcy lawyer should analyze your eligibility for different forms of debt relief available under the Bankruptcy Code and which form of relief is most likely to be beneficial for you. Be sure you understand the relief you can obtain and its limitations. To file a bankruptcy case, documents called a Petition, Schedules and Statement of Financial Affairs, as well as, in some cases, a Statement of Intention need to be prepared correctly and filed with the bankruptcy court. You will have to pay a filing fee to the bankruptcy court. Once your case starts, you will have to attend the required first meeting of creditors where you may be questioned by a court official called a “trustee” and by creditors.

If you choose to file a Chapter 7 bankruptcy case, you may be asked by a creditor to reaffirm a debt. You may want help deciding whether to do so. A creditor is not permitted to coerce you into reaffirming your debts.

If you choose to file a Chapter 13 bankruptcy case in which you repay your creditors what you can afford over three to five years, you may also want help with preparing your Chapter 13 plan and with the confirmation hearing on your plan, which will be before a bankruptcy judge.

If you select another type of relief under the Bankruptcy Code other than Chapter 7 or Chapter 13, you will want to find out what should be done from someone familiar with that type of relief.

Your bankruptcy case may also involve litigation. You are generally permitted to represent yourself in litigation in bankruptcy court, but only attorneys, not bankruptcy petition preparers, can give you legal advice.


Call Alcorn Sage Schwartz & Magrath at 800-330-8765 for a free consultation.

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