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Consumer Bankruptcy
Kennedy & Kennedy, P.C. is a Debt Relief Agency as
that term is defined in the United States Bankruptcy
Code
We have 25 years of experience in guiding those in
financial distress through the process of
bankruptcy. Although the process was made more
expensive and more difficult by the passage of the
BAPCPA in 2005, bankruptcy is still a viable
alternative for those who can no longer function
with their debt load.
Below is a brief description of the four types of
bankruptcy available to consumers. The fees below
are the filing fees only. Each of our clients is a
unique individual with unique circumstances. After
an initial consultation, including disclosures
required by law to be given to you if you are an
“assisted person” under the Code, if it is
determined that bankruptcy is the way to go, we will
agree on a flat fee to be charged in addition to the
fees noted below.
Chapter 7: Liquidation ($245 filing fee, $39
administrative fee, $15 trustee surcharge: Total fee
$299)
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Chapter 7 is
designed for debtors in financial difficulty who
do not have the ability to pay their existing
debts. Debtors whose debts are primarily
consumer debts are subject to a “means test”
designed to determine whether the case should be
permitted to proceed under chapter 7. If your
income is greater than the median income for
your state of residence and family size, in some
cases, creditors have the right to file a motion
requesting that the court dismiss your
case under § 707(b) of the Code. It is up to the
court to decide whether the case should be
dismissed.
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Under chapter 7,
you may claim certain of your property as exempt
under governing law. A trustee may have the
right to take possession of and sell the
remaining property that is not exempt and use
the sale proceeds to pay your creditors.
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The purpose of
filing a chapter 7 case is to obtain a discharge
of your existing debts. If, however, you are
found to have committed certain kinds of
improper conduct described in the Bankruptcy
Code, the court may deny your
discharge and, if it does, the purpose for which
you filed the bankruptcy petition will be
defeated.
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Even if you
receive a general discharge, some particular
debts are not discharged under the law.
Therefore, you may still be responsible for most
taxes and student loans; debts incurred to pay
nondischargeable taxes; domestic support and
property settlement obligations; most fines,
penalties, forfeitures, and criminal restitution
obligations; certain debts which are not
properly listed in your bankruptcy papers; and
debts for death or personal injury caused by
operating a motor vehicle, vessel, or aircraft
while intoxicated from alcohol or drugs. Also,
if a creditor can prove that a debt arose from
fraud, breach of fiduciary duty, or theft, or
from a willful and malicious injury, the
bankruptcy court may determine that the debt is
not discharged.
Chapter 13:
Repayment of All or Part of the Debts of an
Individual with Regular Income ($235 filing fee, $39
administrative fee: Total fee $274)
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Chapter 13 is
designed for individuals with regular income who
would like to pay all or part of
their debts in installments over a period of
time. You are only eligible for chapter 13 if
your debts do not exceed certain dollar amounts
set forth in the Bankruptcy Code.
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Under chapter 13,
you must file with the court a plan to repay
your creditors all or part of the money that you
owe them, using your future earnings. The period
allowed by the court to repay your debts may be
three years or five years, depending upon your
income and other factors. The court must approve
your plan before it can take effect.
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After completing
the payments under your plan, your debts are
generally discharged except for domestic support
obligations; most student loans; certain taxes;
most criminal fines and restitution obligations;
certain debts which are not properly listed in
your bankruptcy papers; certain debts for acts
that caused death or personal injury; and
certain
long term secured obligations.
Chapter 11:
Reorganization ($1000 filing fee, $39 administrative
fee: Total fee $1039)
Chapter 11 is designed for the reorganization of a
business but is also available to consumer debtors.
Its provisions are quite complicated. Such a filing
might be necessary if you do not meet the means test
and are not eligible for Chapter 13.
Chapter 12: Family
Farmer or Fisherman ($200 filing fee, $39
administrative fee: Total fee $239)
Chapter 12 is designed
to permit family farmers and fishermen to repay
their debts over a period of time from future
earnings and is similar to chapter 13. The
eligibility requirements are restrictive, limiting
its use to those whose income arises primarily from
a family-owned farm or commercial fishing operation.
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