Deciding to file for bankruptcy is rarely easy, and it usually comes after months or years of trying everything else first. Our job is to help you understand your options honestly: what debts can be discharged, what property you can protect, and which chapter actually fits your situation, so you can make the decision with clear eyes rather than out of panic.
We walk clients through the practical realities of the process, from the paperwork and credit counseling requirement to the meeting of creditors, so there are no surprises along the way.
Who This Helps
- Individuals with debt they cannot realistically pay off on their current income
- People facing wage garnishment, repossession, or an impending foreclosure
- Individuals considering Chapter 7 liquidation who want to know what property is exempt and protected
- People with regular income who may be better suited to a Chapter 13 repayment plan
- Small business owners with significant personal liability for business debts
- Anyone unsure whether their income qualifies them for Chapter 7 under the means test
How We Handle These Cases
Financial Review & Chapter Selection
We review your income, debts, and assets to determine whether Chapter 7 or Chapter 13 fits your situation, and walk you through the means test if Chapter 7 is on the table.
Credit Counseling & Filing
We help you complete the required credit counseling course and prepare a complete, accurate bankruptcy petition and schedules for filing with the court.
Meeting of Creditors
We prepare you for the 341 meeting of creditors and attend with you, so you know exactly what to expect and aren't facing the trustee's questions alone.
Discharge or Repayment Plan
For Chapter 7, we carry the case through to discharge. For Chapter 13, we help structure a repayment plan that's realistic given your income and expenses.
Frequently Asked Questions
What's the difference between Chapter 7 and Chapter 13?
Chapter 7 generally involves liquidating non-exempt assets to pay creditors, with most remaining eligible debt discharged relatively quickly. Chapter 13 instead sets up a three to five year repayment plan based on your income, which can let you keep more property, including a home you're behind on. Which one fits depends heavily on your income and what you're trying to protect.
Will I lose my house or car if I file for bankruptcy?
Not necessarily. Many types of property are protected by exemptions, and secured debts like a mortgage or car loan can often be handled through reaffirmation or, in Chapter 13, through the repayment plan itself. We review your specific assets before filing so you know what to expect.
Do I qualify for Chapter 7 or do I need Chapter 13?
Chapter 7 eligibility is determined by a means test that compares your income to the median in your state and household size. If your income is too high to pass the means test, Chapter 13 is usually the path forward instead.
How does bankruptcy affect my immigration case, if at all?
Filing bankruptcy is not itself an immigration violation and does not typically affect a pending immigration case, since it is a financial matter handled in federal bankruptcy court rather than a criminal or moral character issue. If you have questions about how it might intersect with a specific filing, it is worth raising directly so we can look at your full situation.
This page is provided for general informational purposes and does not constitute legal advice. Every immigration case depends on its specific facts. Contact Murph & Tchamda LLP to discuss your situation with a licensed attorney before taking any action.