Consumer Bankruptcy

When facing financial troubles, individuals often ignore the pending troubles and choose to do nothing. But, generally, debt issues do not fade away – they often get worse. Bankruptcy is not always the answer. Individuals that are proactive and deal with debt issues head on will often find that the bankruptcy process can be easier and more beneficial in the long run.

Bankruptcy is a legal process that allows an individual to gain freedom from debts, repay debts that must be paid back, and in some cases, keep assets they have worked hard to obtain. It is a process for which you need to have a well-skilled attorney on your side. If you are faced with financial difficulties and hire an attorney to help you through the process, bankruptcy can often provide a fresh start. Pruvent will work to determine which type of personal bankruptcy and non-bankruptcy options may be best for you.

Chapter 7

Individuals can file for chapter 7 bankruptcy relief. A chapter 7 will often discharge unsecured debt (e.g. credit cards and medical debt). Debtors may choose to keep secured debts in place, for a home or vehicle, if keeping that debt is feasible and necessary for their reorganization. Thereafter, a debtor can quickly rebuild their credit and begin life debt free. 

An attorney can help you navigate a successful chapter 7.  First, to qualify for a chapter 7 bankruptcy, you must pass a “means test” (assuming that most of your debt is not business debt). Next, you want to protect your assets – an attorney can help you keep certain assets by claiming them as exempt under applicable law.  Finally, you want an attorney to help ensure that you get a discharge by guiding you through the process.

Chapter 13

Individuals can file for a chapter 13 bankruptcy when their individual circumstances dictate that it is necessary to not just discharge debt, but to reorganize their debt into a repayment plan. Typically, a chapter 13 is filed to cure a specific problem. For example, the rules of a chapter 13 will often allow the debtor to:

  • Keep a home out of foreclosure and in the hands of the owner
  • Pay taxes back in a structured, no interest manner
  • Keep hard-earned assets that would otherwise be at risk 
  • Pay back a portion of the debt when paying back the full amount is not feasible

A chapter 13 requires a debtor to pay back the debts over 3 to 5 years and then the court grants the debtor a discharge.

Beyond Bankruptcy

At Pruvent, we can go beyond simply filing a bankruptcy. We want you to quickly put the bankruptcy behind you and rebuild your credit to begin anew. 

For individuals, Pruvent understands the importance of helping debtors put the bankruptcy behind them.  We offer a program to improve a debtor’s credit score within 12 to 24 months post chapter 7 discharge or post-confirmation of a chapter 13 plan. Additionally, we help our bankruptcy clients obtain accurate credit reporting under the Fair Credit Reporting Act (“FCRA”). Under FCRA, if the credit reporting agencies or a creditor fails to report accurately, you have a right to bring a lawsuit to not only obtain correct reporting, but in some cases, you may also be able to obtain a monetary recovery for the incorrect reporting by credit reporting agencies and creditors.