A helping hand,
through financial crisis.
Is Bankruptcy Right for Your Situation?
We can help you decide.
At Kluzak Law, we’re here to help you explore all of your options – including bankruptcy. We’ll sit down and get to know you and go over all of your needs.
Chapter 7 and Chapter 13 Explained.
Chapter 7 Cancels out most debt and offers a fresh start
Chapter 7 bankruptcy is available to businesses, married couples and individuals if they meet minimum income guidelines. Chapter 7 cancels out most of your debt while allowing you to keep property and the things you need for everyday life. All non-essential assets are sold and the proceeds go to pay a portion of debt owed. Under Chapter 7, many debt obligations are “forgiven”, or discharged altogether. Alimony, child support and most student loans are not discharged under the bankruptcy code.
Kluzak Law can help you protect as much of your property as possible from liquidation and help you wipe the slate clean to start again.
Chapter 13: A reorganization and repayment plan for those earning a steady wage
In Chapter 13 bankruptcy, a United States Trustee helps you develop a monthly debt repayment plan to satisfy your obligations over a 3-5 year period. You do not have to liquidate your assets, and most of the time you also reduce the overall amount of debt you owe. Chapter 13 is for businesses, couples and individuals who make more than the maximum allowed by law to file Chapter 7. Chapter 13 also makes sense if you want to keep certain properties. Chapter 13 allows you to make good on your debt promises under the protection of the legal system.
Kluzak Law can help you determine which form of bankruptcy is right for your unique situation and help you maximize the benefits and rights available to you under law.
The History of Bankruptcy
The first official U.S. bankruptcy law was enacted in 1800 in response to land speculation.
Congress enacted the law because it was necessary to provide financial relief to the American public. Early laws written before the 20th century favored the creditors, focusing on recovering the investments of the creditors.
More modern bankruptcy laws and practices in the United States emphasize on rehabilitating (reorganizing) debtors and less emphasis on punishing the debtor.
The economic upheaval of the Great Depression led to a Supreme Court decision that held the primary goal of bankruptcy was to offer debtors a "fresh start" from financial burdens.