Bankruptcy refers to the federal court process of eliminating or restructuring a person’s debt. The two most common forms of bankruptcy available to individuals and families are Chapter 13 bankruptcy and Chapter 7 bankruptcy. The most common form of bankruptcy is filed under Chapter 7 of the bankruptcy code and is often referred to as "liquidation" or "straight bankruptcy." This chapter of bankruptcy is designed for debtors whose prospective income does not generate a monthly surplus in excess of their basic necessities like rent, utilities, groceries, car payments, insurance, etc., so they really cannot afford to pay any part of their dischargeable debts. Chapter 7, however, does not necessarily discharge all of a person’s debt. Certain debts cannot be discharged under Chapter 7, such as:

• Most tax debts (but there are exceptions)
• Child Support
• Student Loans (unless extreme hardship can be proven)
• Court fines or penalties
• Alimony/Spousal Support
• Parking tickets
• Personal injury caused by drunk driving or under the influence of drugs.

Chapter 13 bankruptcy is different from Chapter 7 bankruptcy in that in Chapter 13, your debts are consolidated into one monthly affordable payment to the Chapter 13 case trustee. Chapter 13 debtors are those whose prospective monthly income does to some extent exceed their monthly expenses for necessities, except not enough to pay what is required to be paid. These types of people are able to pay at least the minimum payments on their credit cards, but find themselves left with no money for food, gas and other expenses at the end of the month, so they end up charging those items. They then find that their credit card balances go up and up every month until their credit limits are maxed out, then the problems start. Unlike Chapter 7, in Chapter 13, at the end of the payment period, you receive your "discharge" of debts from the bankruptcy Court. Under Chapter 13 bankruptcy, you will have a set amount of time, usually three to five years, to pay off your consolidated debts (usually the consolidated amount is substantially less than the total amount you owe). This type of bankruptcy completely eliminates your debt; however, the payments that are made over time result only in a fractional part of your debts being paid. Why is this something you should consider? It is because Chapter 13 is an affordable method of paying back missed mortgage payments, tax debts and other debts in a much more comfortable way than through wage garnishment, foreclosure, tax liens and child support enforcement proceedings.

If you are considering filing for bankruptcy, you want an experienced bankruptcy lawyer on your side. I have over 30 years of experience handling bankruptcy cases on behalf of individuals, families, and businesses in Rochester, Buffalo and throughout Western New York. At the initial conference, I will obtain your credit report, review your financial situation, and help you determine whether or not bankruptcy is right for you. If bankruptcy is the right debt management tool for you and your family, I will help you file all of the necessary legal documents, and represent you through every step of the bankruptcy process. My goal is to help you, the client, overcome your financial problems.

If you are struggling with debt and would like more information on bankruptcy and how bankruptcy can help you get rid of debt, I am here to help. The initial consultation is free and together we will formulate a plan to determine if bankruptcy is right for you. I offer personal attention and my rates are reasonable.

If you are interested in setting up a free consultation with a knowledgeable, experienced and dedicated Rochester, New York bankruptcy lawyer, please contact us at the Law Office of Ronald S. Goldman, Esq. (585) 546-7410.