Bankruptcy & Debt Lawyers in Delaware

Bankruptcy is a federal legal remedy designed to give honest debtors a fresh start. Whether through Chapter 7 liquidation, Chapter 13 wage-earner repayment, or Chapter 11 reorganization, an experienced bankruptcy attorney evaluates your assets, income, and debts and recommends the chapter that produces the best outcome for your circumstances.

Chapter 7 vs Chapter 13

The two consumer chapters work very differently:

• Chapter 7 — a liquidation that wipes out most unsecured debt (credit cards, medical bills, personal loans) within 4 to 6 months. Most filers keep all their property because of exemptions.
• Chapter 13 — a 3- to 5-year repayment plan that lets you catch up mortgage arrears, keep non-exempt property, and discharge remaining unsecured debt at the end.

A means test determines which chapter you qualify for; a bankruptcy attorney runs the test and explains which strategy serves you better.

What bankruptcy can and cannot do

• Eliminates most unsecured debt (credit cards, medical, personal loans)
• Stops creditor calls, wage garnishment, and lawsuits via the automatic stay
• Can stop foreclosure and help you catch up on mortgage arrears (Chapter 13)
• Cannot discharge most student loans, recent tax debt, or child support / alimony
• Cannot eliminate liens on property without specific lien-stripping procedures

When to consider bankruptcy

• Your unsecured debt is more than you could realistically pay in 5 years
• You are facing foreclosure or repossession
• You are being sued or wage-garnished
• Creditor harassment is interfering with your life
• You need to catch up on mortgage arrears to keep your home