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Law Offices of David M. Schlachter, LLC

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Bankruptcy - The Last Resort For a Second Chance

Bankruptcy is a last resort when other options have failed to clear an individual of debt. Law Offices of David M. Schlachter, LLC hold its clients' hands during this process and walks them through every step. Bankruptcy can also be an option to a homeowner that is suffering from mortgage debt. While a bankruptcy filing will not end a foreclosure action, it can delay it enough and be a forum to help create a work-out or modification. There are three basic forms of bankruptcy. Contact our offices today to find out which one is right for you.

Chapter 7- Liquidiation

This option is used to wipe away personal and burinsss debt. With this option the debt is wiped away and assets above a certain threshhold are sold to pay off creditors. If you have a lot of assets, property, and savings, this option may not be right for you. If you have no assets and your property is tied up with liens this may be your best option.

Chapter 11 - Reorganization

This option is used for businesses and persons with some assets in order to reorganize, pay off creditors at cents on the dollar, and keep the assets. This option, however, is the mos costly and there are the most reporting requirements. If you want to save your business or property, this may be your best option.

Chapter 13 - Consumer Bankruptcy

This option is used only for personal debt. This option gives the greatest flesxibility to those who have a lot of assets and want to pay off creditors at cents on the dollar and yet keep their car, house, property, and savings. This is a reorganization plan where the Bankruptcy Trustee appoints a Surrogate to help pay off creditors and keep the debtor's estate mostly in tact. This option also allows second mortgages that have no equity become unsecured debt and be discharged the same way. This is the best option for those who have a lot of secured and unsecured debt and want to keep their estate in tact.


Each of these options have different benefits and consequences. Contact our office to learn more and find out which, if any, is right for you. Bankruptcy may allow you to wipe away your debt and start over, but the process is not that simple. As there is no automatic do-over without consequences, contact Law Offices of David M. Schlachter, LLC to find out what is involved in bankruptcy filing and what are the long-term effects to your credit.