Struggling to pay bills? Creditors hassling you?

Miller Hahn can now help you navigate personal or business bankruptcy challenges.

  • Collection Calls
  • Missed Payments
  • Job Loss
  • Medical Bills
  • Credit Card Bills
  • Garnishments
  • Foreclosure
  • Divorce
Our quick reference guide explains the basic differences between bankruptcy options which may be the solution for you.

What is Chapter 7 Bankruptcy?

A Chapter 7 bankruptcy is also known as a liquidation bankruptcy generally meant for individuals with limited income who do not have the ability to pay back their debts. In a Chapter 7 bankruptcy, nonexempt property is sold by the bankruptcy trustee and used to satisfy debts. General unsecured debts such as credit cards and medical bills will generally be wiped out without the need to pay back the creditors which gives individuals a chance at a fresh start. Businesses may also file a Chapter 7 bankruptcy wherein the bankruptcy trustee liquidates assets and settles debts of the business. A business entity which files a Chapter 7 bankruptcy does not receive a discharge of its debts and ceases to operate.

What is Chapter 13 Bankruptcy?

A Chapter 13 bankruptcy also referred to as a reorganization bankruptcy allows individuals to keep their property but pay back debt obligations over a 3-year or 5-year period. A repayment plan is prepared so that individuals can use their income to gradually repay all of part of their debts. A Chapter 13 bankruptcy offers individuals the benefit of catching up on missed mortgage or car payments. Any unsecured debts remaining after completion of the repayment plan, such as credit cards and medical bills may be discharged. Debts that are discharged are not required to be paid back.

What is Chapter 11 Bankruptcy?

A Chapter 11 bankruptcy is also referred to as a reorganization bankruptcy in which an individual or business retains possession and control of assets and seeks an adjustment of debts, either by reducing the debt or by extending the time for repayment through a repayment plan. A Chapter 11 bankruptcy is primarily filed by businesses and rarely filed by individuals. During the Chapter 11 bankruptcy process, a business can continue business operations while making payments through the repayment plan. The repayment plan includes a classification of claims setting forth the amount of money owed to creditors. The plan also specifies how each class of claims will be treated and is voted on by the creditors. If the plan is approved by the creditors, the bankruptcy court will then review and decide whether to approve the plan. The plan will be implemented, and the debtor is required to make the plan payments. Generally, confirmation of a plan discharges any debt that arose before the date of confirmation with some exceptions to debts made nondischargeable under bankruptcy law.

Contact us at (270) 554-0051
and we can discuss your financial situation.

Jennifer Christian, Esq.

Bankruptcy Lawyer

Our firm practices bankruptcy law and is considered a debt relief agency by federal law.
We help people file for bankruptcy relief under the Bankruptcy Code.