Cibik & Cataldo has been practicing law over 25 years and has represented thousands of clients in consumer and business bankruptcy cases. Our focus is upon each client's particular needs. We do not represent banks, finance companies or insurance companies - only people, small business owners and their claims.

Bankruptcy is a legal proceeding in which a person who cannot pay his or her bills can get a fresh financial start. The right to file for bankruptcy is created by the Congress, and all bankruptcy cases are handled in federal court.

Financial problems can be deeply disturbing and extremely stressful. You should not feel alone if you are embarrassed about considering bankruptcy. It is only natural that you would prefer to pay your bills, but bankruptcy may be your best option if you are not able to pay all your debt. Civilized societies provide a way to help people who can not pay their debts. Bankruptcy is a business decision. We suggest that you let your lawyer advise you whether it is the right business decision for you.

For more information please call our toll free number at 866-745-6190.

Bankruptcy Information

There are three types of bankruptcy cases-Chapters 7, 11, and 13. A brief summary follows. For more detailed information click on the title of each section.

• Chapter 7
  The goal for individuals who file Chapter 7 is to free themselves of debt through a bankruptcy discharge. Although businesses normally do not receive a discharge, corporations and partnerships may use Chapter 7 to liquidate and close their business.
  
  
• Chapter 11
  Corporations, partnerships, and sole proprietors wishing to remain in business and reorganize their financial affairs may file Chapter 11. These debtors seek to restructure their debts, either by reducing the debt or by extending the time to repay. A Chapter 11 plan can also be used to liquidate all or a portion of a debtor's assets.
  
  
• Chapter 13
  Chapter 13 is for individuals with regular income who want to reorganize their financial affairs. The debtor proposes a repayment plan, say to catch up on the arrears on their home mortgage. Only individuals and sole proprietors are eligible for Chapter 13, which is simpler and much less expensive than a Chapter 11.

Many individuals and businesses today are swamped with debts that they cannot pay, and need to resort to bankruptcy. Bankruptcy filings can be caused by medical problems, job loss, divorce and separations, and/or a combination of unforseen events. Bankruptcy is often overwhelming, and creditor harassment and  financial uncertainty create tremendous stress. However, Bankruptcy law and the Bankruptcy Court are designed to relieve the burden of financial problems, and an experienced bankruptcy attorney can provide the expert legal advice and qualified representation needed to conquer your state of financial crisis.

Do I need an attorney to file bankruptcy?
Federal law does not require you to have an attorney. You are allowed to file pro se, that is, on your own without an attorney. However, without the assistance of an attorney, it is extremely difficult to do so successfully. Hiring a competent attorney is highly recommended.

What if I am married?
If you are married, you may file a joint petition. A joint petition is the filing of a single petition by an individual and the individual`s spouse. In order to qualify for a joint petition, you must be married on the date that the joint petition is filed. Unmarried persons, corporations, and partnerships must each file a separate case. If you are an individual and have a business, you may not file a single petition for yourself and your business; each must be a separate bankruptcy case.

Will I lose my house, car, and other personal property if I file for bankruptcy?
Not necessarily. Each state has laws that determine which items or property are exempt from being taken away. For example, many states exempt personal items such as furniture and clothing. However, other kinds of property are exempt only to a limit. These exemption limits mean that any equity that you have in the property above the limit is not exempt. The Bankruptcy Court can take the property and sell it, pay off any creditors, give to you the exemption amount, and keep the rest for other creditors.