Law Office of Christopher Hewitt-Bankruptcy Paralegal Aid

Example

An individual overwhelmed by credit card debt and medical bills may benefit from Chapter 7 bankruptcy, which helps eliminate unsecured debts.

Scenario

A client struggling to pay off their credit card debt and medical expenses may qualify for Chapter 7, where non-exempt assets are liquidated to pay creditors, and most unsecured debts are discharged, giving the client a financial reset.

Example

A homeowner at risk of foreclosure can reorganize their debt under Chapter 13, allowing them to keep their home while catching up on mortgage payments.

Scenario

A homeowner facing foreclosure could use Chapter 13 bankruptcy to restructure their debt into manageable payments over a three to five-year plan, enabling them to retain their property while clearing other obligations.

Example

A small business facing insolvency but aiming to continue operations could use Chapter 11 to reorganize debts and maintain business activities.

Scenario

A local retailer facing insolvency opts for Chapter 11 bankruptcy to restructure their debt obligations, negotiate more favorable lease terms, and emerge with a sustainable business model, preventing liquidation.

Example

An individual seeking alternatives to bankruptcy may negotiate directly with creditors to reach a reduced settlement.

Scenario

A client who does not wish to file for bankruptcy negotiates with their creditors to reach a settlement that reduces the principal owed or provides a manageable repayment plan, thus avoiding the bankruptcy process.