Bankruptcy Resources
Snyder & Associates, PC is well-known for a particularly high success rate in Chapter 13 filings. Because of this and our commitment to compassionate care, we know we can lower your stress level when it comes to your finances; we start by helping you to understand the bankruptcy process.

Chapter 7
Often called "straight bankruptcy" or the "liquidation chapter", chapter 7 may be filed by an individual, partnership, or corporation. It is designed to immediately liquidate non-exempt assets. All non-exempt property, with some exceptions, is turned over to a bankruptcy trustee who disburses the debtor's funds to creditors in an effort to repay part of the debts that are owed.

In the case of an individual, the debtor is allowed to claim certain property exempt and keep it. In exchange for this, the debtor gets a discharge, which means that the debtor does not have to pay certain types of debts. However, alimony, child support, student loans, some types of taxes, and fines are not dischargeable. Chapter 7 relief can only be obtained once every eight (8) years.

Chapter 11
Often called the "reorganization chapter", Chapter 11 is generally used by businesses or by individuals who have substantial assets and/or income to restructure and repay their debts. Creditors vote on whether to accept or reject a plan of reorganization which must be approved by the court. While the debtor normally remains in control of the assets, the court can order the appointment of a trustee for cause, such as when the debtor does not get a plan approved in a reasonable amount of time, fails to follow some of the rules, or breaks the law. In addition to the filing fee paid to the clerk, a quarterly fee is paid to the U.S. Trustee in all Chapter 11 cases.

Chapter 12
For family farmers (individuals, sole proprietorships, partnerships or corporations) with less than $3.25 million dollars in debt or family fishermen with less than $1.5 million dollars in debt, Congress created a special bankruptcy section, Chapter 12, to help you stay in business. A Chapter 12 allows you to continue farming or fishing while reorganizing your debts. Long-term mortgage debts, short term equipment loans, and operating lines of credit can be rewritten to more favorable terms. Foreclosures and repossessions are immediately stopped. A trustee is appointed by the court to help implement a reorganization plan which is based upon the value of your assets and realistic projections of your income and expenses over the next 3 to 5 years. Payments are made to the trustee who then pays your creditors

Chapter 13
Chapter 13 is designed for individuals with regular income who would like to pay part or all of their debts in installments over a period of time.   As soon as a Chapter 13 is filed, you are protected from creditor actions such as garnishments, foreclosures, and repossessions.

You are eligible for Chapter 13 if your debts do not exceed certain dollar amounts set forth in the Bankruptcy Code (currently you must owe less than $307,675 of unsecured debt and $922,975 of secured debt). Under Chapter 13, you file a repayment plan which typically runs from three years to five years, depending upon your income and other factors. The court must approve your plan before it takes effect. After completing the payments under your plan, your debts are generally discharged except for domestic support obligations; most student loans; 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.