Bankruptcy

So What's the Difference Between a Chapter 7 and a Chapter 13 and a Chapter 11, asks the Bankruptcy Blog?

By Joseph McDaniel, Esq.

Then the pain goes away, and life is much easier. A fresh start has a lot in common with a titanium knee.

A Chapter 13 is more like a heart transplant; it hurts like heck at first, and then it continues to hurt and cost like crazy until your Chapter 13 Plan is confirmed in Bankruptcy Court, both in legal fees, and then in the monthly payments over three (if you're lucky) to five (if you don't pass the means test) years to the Chapter 13 Bankruptcy Trustee in Arizona.

Are there benefits to filing a Chapter 13 in Arizona? Sure, but not the Super Discharge, which is only a fond memory to experienced bankruptcy lawyers in Arizona; we used to be able to discharge darn near anything, including embezzlement debts (which I once did for a client, many years ago; I was a little surprised by that myself!).

And I seriously question whether a well-advised bankruptcy client in Arizona would decide to pay more in legal fees for a Chapter 13 bankruptcy, all for the privilege of being in bankruptcy purgatory for three to five years, and to MAKE PAYMENTS over all that long three to five years, under the all-knowing eye of creditors, the Arizona Bankruptcy Chapter 13 trustee, and the Arizona Bankruptcy Court.

Much pain, you know?

How about Chapter 11 cases for individuals? Well, I've gotten a few confirmed in Bankruptcy Court in Arizona.

If you're a Rock Star, or a Brain Surgeon, or a Star of Stage and Screen, they make a lot of sense. Otherwise, not so much.

NOTHING HERE CONSTITUTES LEGAL ADVICE RE A CHAPTER 7, CHAPTER 13, CHAPTER 11, OR CHAPTER 12. FIND AN ARIZONA BANKRUPTCY LAWYER WHO IS BOARD CERTIFIED IN BANKRUPTCY LAW, AV RATED, AVVO 10 RATED, ON SUPERLAWYERS, OR JUST VERY EXPERIENCED AND A FORMER CHAIR OF SOME BANKRUPTCY SECTION OR COMMITTEE. NOTHING HERE MAY BE USED AS LEGAL ADVICE IN CONNECTION WITH ANY BANKRUPTCY, WHETHER THAT BANKRUPTCY IS IN PHOENIX, GLENDALE, TEMPE, MESA, SCOTTSDALE, OR ANYWHERE ELSE.

Full post as published by Arizona Bankruptcy Attorney Blog on May 31, 2010 (boomark / email).