Bankruptcy

We know that the prospect of having to file bankruptcy causes great anxiety and is a trying time in the life of any individual or business owner.

Valdez Lehman has represented hundreds of clients through the bankruptcy process and treat each client’s case with thoroughness, dignity and respect.

We counsel clients on the various options available to them and assist them in protecting certain assets such as the equity in their home and their retirement accounts.

Valdez Lehman, PLLC is a debt relief agency and assist individuals and businesses file bankruptcy under the U.S. Bankruptcy Code.

Listed below is a brief description of filing for bankruptcy under chapters 7, 11 & 13. Note that this is just a brief description and that a consultation with one of our attorneys is needed to determine which bankruptcy chapter is appropriate for the client:

Chapter 7: 

Chapter 7 will cease harassing calls and garnishment wages. A Chapter 7 bankruptcy is known as a “straight liquidation.” In a chapter 7, a court appointed trustee takes and sells your non-exempt assets and pays your creditors a dividend from the proceeds. You then get a discharge on your debts, a clean slate. In a majority of cases, most people keep what they own and do not lose any property in their Chapter 7 bankruptcy case. A business that files for Chapter 7 bankruptcy ends up closing their business as a result of the filing.

Chapter 13:

Chapter 13 bankruptcy is filed by individuals who do own a great deal of property or assets, but find that their income cannot cover the exorbitant payments on debts owed. In this form, the debt is restructured, and in some cases reduced so that people retain their assets but have reasonable payments which they can make to debtors. Generally the court-ordered payments must be made on time and regularly in order to avoid having assets seized.  The period for discharge from these debts is usually 3 to 5 years.

Chapter 11:

Businesses file a similar form of bankruptcy called Chapter 11. Some or part of the business’ debt may be cleared, and payment plans are restructured. Chapter 11 bankruptcy has the purpose of reorganizing debt so that the business can continue.