Bankruptcy

Monohan & Blankenship is a debt relief agency helping people to file for bankruptcy relief under
the bankruptcy code. Bankruptcy is a legal proceeding regulated by the Federal Court System. The purpose of bankruptcy is to give the debtor a fresh start and to relieve the debtor of the hardship of having to deal with financial difficulty.

• Chapter 7: You commence a chapter 7 bankruptcy proceeding by filing a "petition" with the bankruptcy court. You are required to disclose to the court all of your property and debts. The law allows you to keep "exempt" assets up to a certain dollar amount. Any assets that are not exempt are turned over to the bankruptcy trustee, who then converts these assets to cash for distribution to the creditors. After the trustee has reviewed the case, and converted any no exempt assets to cash, you then receive an discharge of all dischargeable debts.

• Chapter 13: Chapter 13 is a debt repayment plan through which you consolidate your
  debts and make payments on your debt over a 3 to 5 year period. Debts that are generally consolidated in a chapter 12 are mortgage arrears, vehicle loans, credit card debts and medical bills. All outstanding debts must be included in the Chapter 13 consolidation.
  To be eligible for a chapter 13 repayment plan, you must be working or a have a consistent source of income for your repayment plan. Your income must be sufficient enough for you
  to be able to pay your monthly living expenses, and for you to make payments to the court to consolidate your debts. A chapter 13 repayment plan does offer you protection, the creditors cannot collect from you and the creditors are required by a Federal Court order to adhere to the terms of the plan.