Buffalo Bankruptcy Lawyer

Filing bankruptcy is an important decision that can affect various aspects of your life, if after reading this article you decide that bankruptcy is the right choice for you, you should put forth plans to find and establish a relationship with a reputable Buffalo Bankruptcy Lawyer. Bankruptcy has two specific purposes; it allows creditors to receive some payments on the debts the debtor has incurred, if the debtor has the means to pay it. Additionally, the bankruptcy law allows debtors to start over, by essentially eliminating a great portion of debt.

In general, many people have four different options when it comes to bankruptcy. The four classes of bankruptcy include Chapter 7, Chapter 11, Chapter 12, and Chapter 13. A chapter 7 filing is specific for businesses or individual debtors and results in liquidation of various possessions in efforts to eliminate some of the incurred debt. Chapter 11 is typically used for businesses, though occasionally individuals who have a large amount of assets and debt will file a chapter 11, this is a very complex rehabilitation plan that creates a method of repayment in a specific period of time. A chapter 12 bankruptcy filing, is specific for those who are anglers or farmers, this is also a rehabilitation plan to create repayment to the creditors. Finally, a Chapter 13 filing is specifically for individuals who have a solid income and means to repay the debt this is a rehabilitation plan.

Chapter 7 and Chapter 13 are the two most common types of bankruptcy cases seen in the world today. With chapter 7 filings you are provided with a trustee, this trustee will sell off all of your property that is deemed non-exempt by the courts, then use the funds to pay the creditors for the debts incurred. With chapter 13 filings, you are given a period of time typically anywhere from 3 – 5 years to repay the debts, then when you have met your commitment you will then receive a discharge.

There are various charges that go along with filing for bankruptcy, after the new Bankruptcy Act went into effect in October 2005, fees were increased. To file a chapter 13 bankruptcy the charge is $189, for a chapter 7 bankruptcy the fee is $274. This is in addition to any administrative fees that the court may impose for filing. With the new Bankruptcy Act, the court also has the right to waive filing fees for a chapter 7 filing if it is deemed that the debtors income does not meet the specific levels and does not have the means to pay the fee in any type of installments. These fees of course do not include any fees charged by your Buffalo Bankruptcy Lawyer. There are no set guidelines for these fees, the best advice is to speak with several attorneys and find one that will work with you. Occasionally, the lawyer fees can be combined into the filing and payment can be made following the repayment plan.