We Have Been Solving Financial Problems For Over 35 Years. Our practice areas include bankruptcy, consumer protection, debt consolidation, defending against creditor lawsuits, litigation, and STUDENT LOAN DEBT RELIEF.

There are three main types of bankruptcy that can be filed in bankruptcy court: Chapter 7, 11 & 13. A bankruptcy lawyer typically reviews your financial history and your current situation to determine which type of bankruptcy is most beneficial for you. Filing for bankruptcy is an important step, as it puts what is known as an “automatic stay” on your creditors, in order to stop harassing creditor phone calls, foreclosures, evictions, repossessions, lawsuits, garnishments, tax levies & utility shut-offs from occurring.


Chapter 7

In Chapter 7 bankruptcy, most debts are discharged, and the accounts are closed. This includes most credit cards, personal loans, medical bills and unsecured debt. There are specific types of debts that are never eligible for elimination in bankruptcy, including child support, spousal maintenance, divorce property settlements, fraudulent debts and most student loans.

To be eligible for a Chapter 7 filing, you must not have been granted a Chapter 7 discharge in the last 8 years and you must prove that your family’s income falls below the median income for a family of your size. It typically takes about three months to complete a Chapter 7 filing once it has been filed in bankruptcy court.

Chapter 13

Chapter 13, which is often referred to as the “wage earner plan”, eliminates debts upon completion of a payment plan. It allows debts to be reorganized in a way that makes it easier to be paid back by the debtor in a plan over a period of 3 to 5 years. Filing for Chapter 13 bankruptcy stops interest from accruing on most types of debts and allows the debtor to pay off a percentage of the original amount, while eliminating any remaining balances at the completion of the plan. Chapter 13 also stops foreclosures on home mortgages and can be used to prevent an automobile from being repossessed. It can also be helpful in consolidating credit card debt, medical bills and other types of unsecured debt.

Chapter 11

Business bankruptcy law firms work with business owners to file for Chapter 11 bankruptcy, which allows for business reorganization. This type of bankruptcy allows corporate entities to restructure and pay creditors over a period of time while remaining under bankruptcy protection.

When you are ready to take control of your financial future and settle or restructure your debts through bankruptcy, contact the bankruptcy attorney at Hoverson Law. We will guide you through the different types of bankruptcy, ensuring that you thoroughly understand all of your options. Whether you are a business owner or an individual looking for debt relief, contact us today for a free consultation.