Law Office of Octavio L. Martinez

Attorney at Law

Bankruptcy


Bankruptcy laws help people who can no longer pay their creditors get a fresh start – by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also protect troubled businesses and provide for orderly distributions to business creditors through reorganization or liquidation.

Most cases are filed under the three main chapters of the Bankruptcy Code:

Chapter 7         Chapter 7 provides for "liquidation," (i.e., the sale of a debtor's nonexempt property, if any, and the distribution of the proceeds to creditors.)  In the event there is no non-exempt property, the debtor’s debts are discharged, with no payment to the creditors.  This is the most common type of bankruptcy.

Chapter 11      Chapter 11 generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep a business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.

Chapter 13 - Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.

As a result of the downturn in the economy and the housing crisis, many clients have inquired of Octavio L. Martinez, P.A. regarding bankruptcy.  We have assisted several clients with decisions relating to bankruptcy, and have filed Chapter 7 bankruptcies for clients, who were successful is discharging all their debts.  We currently handle Chapter 7 Bankruptcies only.  However, in the event the client is in need of a Chapter 11 or 13 Bankruptcy, we can refer you to bankruptcy attorneys who specialize in those areas.

 

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