Call nowDirections
Hours 9am - 5pm - Call Now!

Introduction to Bankruptcy

At the Law Offices of Leslie Richards we are committed to helping people who are struggling to pay bills and avoid foreclosure on their

At the Law Offices of Leslie Richards we stand by our clients and we fulfill our promises.  We are not a bankruptcy mill.  To the contrary, we give personal attention to every client because every client deserves our personalized attention.

We can help you

  • *Stop repossession of your car
  • *Save your home from foreclosure
  • *Protect your assets from creditors
  • *Restore your financial independence



Chapter 7

The main purpose of a Chapter 7 Bankruptcy is to discharge certain debts so the debtor can have a “fresh start” without personal liability for the discharged debts after filing and completing the Chapter 7 Bankruptcy case.

With Chapter 7 Bankruptcy, the debtor turns over all non-exempt property to the bankruptcy trustee who then converts it to cash for distribution to the debtor’s creditors.  In most cases, there will be no non-exempt assets to pay off the creditor.  However, usually, the creditor will keep the house, car, savings, retirements account, etc. as the court recognizes that people need transportation, housing, closing, household goods and other basis to get a fresh start.

Chapter 11

Chapter 11 bankruptcy provides a procedure by which an individual or a business can reorganize its debts while continuing to operate. The debtor, often with participation from creditors, creates a plan of reorganization under which to repay part or all of its debts.

Chapter 11 bankruptcy is not just for businesses. There are many individuals with enough personal assets to require a plan that can handle their unique concerns. It may be your only option to protect your high-end real estate.  Most individuals who file for Chapter 11 bankruptcy have multiple properties, including rental properties, they want to protect.  If you think Chapter 7 bankruptcy or Chapter 13 bankruptcy might not be able to meet your needs, talk to us aboutr about Chapter 11 bankruptcy.

Having spent several years providing bankruptcy representation for individuals and businesses, The Law Offices of Leslie Richards understands how the process works. Keeping in mind your complete financial picture, we will help you get the immediate relief and long-term financial solutions you are looking for.

Chapter 13

Chapter 13 is used primarily by individual consumers to reorganize their financial affairs under a repayment plan that must be completed within three or five years. To be eligible for Chapter 13 relief, a consumer must have regular income and may not have more than  $339,900 in unsecured debt and over $1,010,650 in secured debt.  Chapter 13 is not available for businesses such as corporations or partnerships.

Chapter 13 bankruptcy can enable individuals to eliminate certain tax debt, credit card debt, medical bills, and other types of debt and move forward without loss of personal assets.  Chapter 13 is usually called the wage earner chapter.  Chapter 13 is a debt repayment plan for individuals

It allows the debtor to protect a house from foreclosure by creating a repayment plan.  Under Chapter 13, individuals can stop foreclosure proceedings and have the opportunity to cure delinquent mortgages over the time of the bankruptcy plan.  It also allows for re-amortizing secured debts (other than the primary residence) which may lower payments and make them more affordable.

The bankruptcy court cannot force a lender to modify your mortgage.  However in certain cases, the debtor may be able to strip the junior loans. This is what is known as lien stripping.

Many people select a Chapter 13 because of the possibility of stripping the second mortgage or trust deeds junior to the first mortgage if there is not enough equity in the property.  However, the junior trust deeds are not stripped until after the plan payments have been made.  So it is important when planning a chapter 13 that if a debtor cannot make the first trust deed payments, the debtor consider modifying the mortgage before filing the chapter 13 so that this will not be a problem; and at the end of the plan period, the junior liens can be stripped from the property.  Before a debtor considers lien stripping, there are various factors to be taken into consideration.  At the Law Offices of Leslie Richards, we are here to assist you with this decisions.