BERRY & TRIPP P C

Bankruptcy is a legal proceeding in federal bankruptcy court by which a person who has more debts than he or she can pay seeks relief from those debts. The right to file a bankruptcy exists under the law, and this law was designed mainly to take care of serious problems with debts and to allow a fresh financial start... There are two Chapters of bankruptcy that consumers use. Chapter 7, (commonly called "total" bankruptcy), and Chapter 13, which is a consolidation and repayment program. In Chapter 7 bankruptcy, a Trustee sells the debtor's property (other than exempt property) and uses the sales proceeds to pay creditors. The result of a successful bankruptcy proceeding is a discharge in bankruptcy, which releases the debtor from payment of affected debts. Chapter 13, which consolidates debt, allows payments to be made for up to 5 years to pay off the consolidated debt. The plan suspends legal and collection actions against the debtor for the period it is in effect, and may also..