What’s with all these chapters and what do they have to do with my debts? You’ve been wondering that for years and now you’re going to get the answers straight from the hometown Alameda lawyer’s mouth.
The federal government has a set of laws called the Bankruptcy Code. The Code is divided up into chapters. For some reason, they decided to go with odd chapters only–until they got to chapter 12 (don’t ask). So we’ve got a chapter 1, a chapter 3, and so on up through chapter 13. Chapters 1 though 5 deal with the general stuff in bankruptcy that are common to all the different types of bankruptcy. Alameda residents, Oakland resident, Berkeley residents, or any Alameda County residents who file for bankruptcy are all subject to the provisions of these chapters. In fact, it’s the same set of general rules across the country.
Chapters 7, 11 and 13 are the bankruptcy chapters that talk about the different routes folks can take to eliminate or reduce their debts. For most people, a chapter 11 bankruptcy case is barely a tiny blip on the radar. I’m just mentioning it now and will only say that this chapter is usually for big companies with millions (or even billions) of dollars of debts and assets. Most people in Alameda never need to consider chapter 11.
Chapters 7 and 13 are the ones that regular people care about. Chapter 7 is considered to be just the plain, old, regular bankruptcy. We prepare your paperwork; we file; we handle things with the court, the trustee, the creditors and anyone else who needs handling; and about three months later, you get a discharge order from the judge. The discharge order means that all your debts that can be wiped out have been wiped out.
Chapter 13 is very different animal. It lasts somewhere between three years (36 months) and five years (60 months). During that your case is going, you make a monthly payment to a trustee who then makes monthly distributions to your creditors. Certain creditors, like car lenders and the IRS (of course) get paid ahead of other “lower priority” creditors. Doing the math, you can see that you’d need to make between 36 and 60 payments. At the end of the payment period, the judge issues a discharge order and sends us each a copy here in Alameda, and the rest of your debts are wiped out.
The big question of course is how much your monthly payment is going to be. That’s where Alameda bankruptcy attorney–James Pixton–works his magic. Using years of experience and a razor sharp legal mind, he calculates what bankruptcy law requires you to pay and does everything he can to see that the payments are as low as possible.
So which do you choose? Call (510) 451-6200 right now and make an appointment today with Pixton Bankruptcy Law. You’ll meet with Alameda bankruptcy attorney James A. Pixton at his quiet, cozy office on Oak Street (one street over from Park street) for a free initial meeting. He will talk in detail about the advantages and disadvantages of chapter 7 and chapter 13 and will help you decide which one is best for you.
Remember: Pixton Bankruptcy Law is the friendliest law office in Alameda! You’ll like us–and we’ll like you!
