David R. Badger, P.A. Services
In a Chapter 7 case, the Bankruptcy Court appoints a Trustee to examine the Debtors' assets to determine if there are any not protected by available "exemptions". Exemptions allow Debtors to keep certain types of property and amounts of money. If there is any non-exempt property in a case, the Trustee may liquidate the property and distribute the proceeds to unsecured creditors.
Most debts are discharged from any legal obligation to repay, including credit card debts, certain medical bills and other past-due bills.
However, certain types of debts are not discharged in a Chapter 7 case. These include alimony child support, equitable distribution, certain taxes, student loans and criminal fines.
Chapter 7 Debtors with primarily consumer debts are subject to a "Means Test" designed to determine whether the case should be permitted to proceed under Chapter 7 based upon income, family size and other factors. Chapter 7 Debtors whose debts are primarily business-related or are business Debtors are not subject to a "Means Test".
We are experienced in representing the interests of all parties in a bankruptcy case: Debtors, Strategic Asset Purchasers, Creditors, and Litigants in adversary proceedings. While we may specialize in bankruptcy, our expertise also includes representing clients to settle debts in non-bankruptcy related workouts.
Our initial consultation for consumer cases is free! Consultations for business-related matters, non-bankruptcy "workout" matters, creditor representation and litigation are billed at the consulting attorney's hourly rate. Payment for consultations on consumer matters is expected at the time of the consultation. This charge is credited against the retainer paid when you retain our office for you matter.
In a Chapter 13 case, a Debtor with regular income proposes a Plan repaying all or part of their debts over a period of three to five years. The amount paid to creditors and time period a Debtor must remain in their Chapter 13 case is dependent on income among other factors.
A Chapter 13 is often called a "wage-earners" plan as regular income is generally necessary to have a Chapter 13 Plan confirmed. Debtors often choose to file a Chapter 13 case as a tool to stop the foreclosure of real estate or repossession of vehicles while paying any mortgage arrearages or vehicle(s) in the Plan.
Certain types of debts are not discharged in a Chapter 13 case. Certain state and federal taxes, child support, alimony, criminal fines, court-ordered restitution, student loans that are not paid in full in the Chapter 13 Plan and certain long-term secured debt obligations.
Chapter 11 is designed for the reorganization of a business but is also available to individual consumers whose debts exceed the limits allowed for filing a Chapter 13 case. Chapter 11 is similar to Chapter 13 as a repayment Plan is proposed to creditors.
Business that file a Chapter 11 case may continue to operate their business as a "Debtor In Possession". All Chapter 11 Debtors are required to file with the Court monthly reports stating their income and expenditures and to pay quarterly fees to the Court based upon the amounts disbursed within that calendar quarter.
Because the provisions of a Chapter 11 case are complicated, it is highly recommended any person or business contemplating filing a Chapter 11 consult with an attorney who is a certified specialist in consumer and business bankruptcy law.
Mr. Badger is a highly experienced trial attorney and litigator with a focus on bankruptcy-related litigation. Although litigation issues do not arise in all bankruptcy cases, having a certified litigator often prevents unnecessary and expensive litigation.
Workout Options and Asset Protection
Mr. Badger is a highly experienced trial attorney and litigator, who focuses on bankruptcy-related litigation and his professional reputation often provides a non-bankruptcy resolution of your financial issues.
In addition to over forty years of litigation in the Bankruptcy Court, Mr. Badger has tried civil and criminal cases in both the State and Federal Courts.
Attorneys at Law - Charlotte, North Carolina