In a Chapter 7 bankruptcy, unsecured debts are normally discharged and the Debtor has the option of deciding whether to reaffirm or reinstate certain secured debts, such as a mortgage on their home or a loan on their vehicle. If a Debtor chooses not to keep a mortgage or a car loan, that debt is also discharged and the asset securing the debt is normally turned back to the Creditor.
Duffy Law Office also handles reorganizations which would be either an individual reorganization under Chapter 13, a Farm Reorganization under Chapter 12 or a Business Reorganization under Chapter 11. Duffy Law Office has handled multi-million dollar business reorganizations in the past which has resulted in confirmed Plans with a restructured debt which will allow the business to continue operating and succeed in the future.
Chapter 13 individual reorganizations are for people who have a higher income and do not qualify to file under Chapter 7 or individuals who have excessive assets that cannot be protected in a Chapter 7 proceeding and the individual wants to keep these assets and pay for them. A Plan of Reorganization is filed in a Chapter 13 which often times allows the Debtor to pay a small percentage on his/her unsecured debts and then restructure the secured debts so that the individual can cashflow his/her secured debts.
Kevin Duffy has been representing farmers in Northwestern Minnesota under Chapter 12 Reorganizations since Chapter 12 cases were created in the mid 1980's when there was a farm crisis. Chapter 12 Farm Reorganizations are more complicated than a Chapter 13 individual reorganization because there is a farm business involved in a Chapter 12. There is a Chapter 12 Plan of Reorganization filed which is much more detailed and expansive than a Chapter 13 bankruptcy plan. A Chapter 12 Reorganization will normally include an income and expense summary from the past three years of the Debtor's operation as well as a projection five years into the future for farm related expenses. Like a Chapter 13 bankruptcy, a Chapter 12 Debtor is normally able to pay a small fraction of his/her unsecured debt. In a Chapter 12 the Debtor also has the ability to reduce the amount of a secured debt down to the value of the asset securing it which will result in an enhanced cashflow.
The type of bankruptcy that an individual can qualify for is a complicated question which involved insight and analysis which Duffy Law Office is able to provide its' cliental so that they may make an informed decision on which bankruptcy route they should choose.