Bankruptcy Lawyer Paul M. Bach:

In addition to being an experienced bankruptcy attorney, I am a Certified Public Accountant. This education and background provides me with insight and experience beyond general bankruptcy law and procedure. I have the knowledge to understand the practical and financial side of bankruptcy, which helps me offer a more comprehensive bankruptcy service to individuals and businesses. 

Bankruptcy is not the answer for every client with financial difficulties, and I have the tools to explain other options for debt relief and debt management that may provide more appropriate and effective solutions.

I will not advise a client to file bankruptcy if I feel it is not in the best option or it will not help a client. I always focus on the best interest of each client when offering legal solutions.   For more on bankrupcty in Illinois, visit my website:   http://www.bankruptcyinillinois.com.

Every year, more than 1,000,000 Americans file for protection under Federal bankruptcy laws.  Although some bankruptcy claimants are deemed as credit abusers and/or considered financially irresponsible, many hardworking individuals and businesses can succumb to financial difficulty, and face irreperable economic crisis. Bankruptcy is designed as a legal option to help resolve such a crisis, and act as a financial life preserver for those drowning in debt.  To discuss your bankruptcy options, or other areas of recourse that might be available to you, contact a qualified bankruptcy attorney who can advise you of your legal rights as stated under Bankruptcy Law and federal Bankruptcy courts.

 

Bankruptcy is a federal court process designed to help individuals and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as liquidation or reorganization.

Under a liquidation bankruptcy (Chapter 7), a claimant files to eliminate debt through the bankruptcy court. Under a reorganization bankruptcy (Chapters 11,12, and 13), a claimant files a plan with the bankruptcy court proposing how to repay creditors. Some bankruptcies require that debts be repaid in full over time, others may only require a percentage of the balance due, and some bankruptcies allow debts to be eliminated completely.

What is a discharge order?

A discharge order is issued by the court and permanently prohibits creditors from taking action to collect dischargeable debts against the debtor personally; this does not prevent secured creditors from seizing collateral if payments are not kept up, or other creditors from pursuing property of the estate. Some debts are not dischargeable, and others may be found to be non-dischargeable depending on particular circumstances.

What debts are dischargeable?  

In general, all debts are usually dischargeable. Some debts listed in 11 U.S.C. º 523, such as those based on fraudulent conduct, embezzlement, or willful and malicious injury to another, are dischargeable unless a complaint to deny discharge of that debt is timely filed with the bankruptcy court. Ordinarily, these complaints must be filed within sixty (60) days of the first date set for the meeting of creditors. Additionally, debts that were not listed on bankruptcy schedules or that were incurred after filing bankruptcy are generally not discharged. Denial of a discharge goes to the debtor`s entire proceeding, while determination of non-dischargeability goes to a particular debt only. A request for denial of discharge is usually granted because the debtor has defrauded a creditor, concealed property of the estate, made a false oath, presented or used a false claim, or refused to obey any lawful order of the court. A non-dischargeability of a debt excepts a particular debt from the discharge. This means that if the debt is determined non-dischargeable the debtor is still obligated to that creditor.

What is a priority debt?
A priority debt is a debt entitled to priority in payment in a bankruptcy case. A general listing of priority debts is given in 11 U.S.C. º 507 of the Bankruptcy Code. Examples of priority debts are taxes, wage claims of employees, debts related to goods, and services provided to a debtor`s estate during the pendency of a bankruptcy case. In addition, alimony, maintenance or support of a spouse, former spouse, or child is considered a priority debt.