Bynum & Murphrey can help you from personal and business debt. We have over 30 years experience helping individuals. Whatever your circumstance our experience can relieve you of debts. If you have recently filed Chapter 7 or Chapter 13 bankruptcy or are considering filing bankruptcy, please call us for a professional and confidential consultation.

Bynum & Murphrey also handles Estate Planning/Administration and Real Estate Development Law.

When people are facing Bankruptcy, many questions and concerns arise.

1. Will I lose any or all of my property in a bankruptcy?
In a Chapter 13 the answer is almost always no. In a Chapter 7 the answer would depend on the amount of non-exempt equity in the property and if the property secures a debt (i.e. House-Mortgage, Automobile-Car Note) whether the property is properly insured and payments to the secured creditor are current.

2. What is Chapter 7 and 13?
Both are forms of protection from creditors offered under the Bankruptcy Code. Bankruptcy is a purely federal court proceeding as provided for under the Constitution. There is no state court equivalent. Chapter 13 or Individual Debt Adjustment allows the debtor to pay all or a portion of his or her debt back over a period of time (usually three to five years). Chapter 7 or liquidation is for debtors who do not have the means to perform under Chapter 13. Most debts are wiped out (discharged) in Chapter 7 and the debtor pays nothing back to these creditors. Chapter 7 cases usually lasts from four to six months.

3. What debts are not discharged by bankruptcy?
In Chapter 7 the following debts are not discharged: Student loans less than seven years old, tax debts less than three years old, fraudulent credit card charges or fraudulent obtaining of credit, alimony and child support, criminal restitution, DUI injuries, willful and malicious damage to property or another person. In Chapter 13 some of these debts can be discharged if a full repayment is made during the case, others can be discharged without making a full repayment.

4. I have filed for bankruptcy before, can I file again?
You can receive a discharge in a Chapter 7 case once every 6 years. Whether you can refile for Chapter 13 would depend on various factors. Please call Bynum & Murprey to discuss your situation.

5. How is my credit affected?
Chapter 13 stays on your credit record for 7 years from the date of filing. Chapter 7 remains on the credit bureau report for 10 years from the date of filing.

6. How is Chapter 13 funded or paid?
For debtors who have employers, the payments are deducted out of the debtor's paycheck every pay period. This is not a garnishment, but a wage deduction. The employer turns the deduction over to the Chapter 13 Trustee who distributes your funds to the creditors. Self-employed debtors are responsible for making their plan payments directly to the Trustee.

7. Can I obtain credit while in bankruptcy or after I obtain my discharge?
Yes, while in Chapter 13 with approval of the Chapter 13 Trustee. In Chapter 7 the debtor usually cannot obtain credit until the case is discharged.

8. Do I qualify for Chapter 13 or 7?
Please contact Bynum & Murphrey for consultation.