A Chapter 7 can be used by individuals to discharge certain of their debts and to begin again with a “fresh start” but not a “head start.” Chapter 7 can also benefit a business by the orderly dissolution of the business.

A Chapter 13 is a repayment plan for individuals and should be considered if there are assets which would otherwise be exposed to liquidation in a Chapter 7 case, or if a Chapter 7 proceeding is otherwise inappropriate.

A Chapter 11 proceeding, often referred to as a Reorganization, is ordinarily used by businesses who wish to remain in operation and repay creditors through a court approved plan for the repayment of debt. It is also available for individuals depending on the facts of the case. Chapter 11 can also be used for an orderly liquidation of a business.

In both the State and Federal Courts there are powerful loss mitigation programs which may assist a homeowner obtain a forbearance of the mortgage debt or to restructure or modify an existing mortgage, all designed to permit homeowners to retain their home.

It may not be necessary to seek bankruptcy protection if debt can be restructured directly with the lender. This can be a viable and cost effective alternative for a financially troubled business or individual.