Chapter 7 - Liquidation: This chapter of the U.S. Bankruptcy Code provides for an orderly court-supervised means of selling certain assets to pay your creditors. In a Chapter 7 case, a Trustee is appointed to take charge of your "estate" consisting of all your assets. The law may allow you to keep some of your property. The Trustee will sell the rest to pay your creditors. Unless someone objects, some or all of your debts will be discharged within a few months after the Bankruptcy petition is filed.

Generally, to the extent you are paying down IRS Taxes or mortgage arrears, it is not in your best interest to convert to a Chapter 7 until these obligations are paid through Chapter 13 (especially if you want to keep your home). However, once these items are paid down it may be in your interest to convert to a Chapter 7. Be advised however that the case law under the Bankruptcy Abuse Prevention and Consumer Protection Act enacted, October17, 2005 (BAPCPA) is still young. Our best advice is that if you are in a Chapter 13 you may wish to remain in the Chapter 13 until the case law develops. By converting to Chapter 7 you may risk losing the valuable benefits you may receive through a Chapter 13 discharge. More importantly, you may be required to reaffirm obligations in a Chapter 7 where as a Chapter 13 would not require reaffirmation of certain debts.

In a Chapter 7 the Clerk of the Bankruptcy Court issues the discharge 60 days after your 341(a) Meeting of Creditors. You should receive a timely discharge unless the Trustee objects to your discharge through a formal motion. Generally this occurs if you fail to comply with the Trustee's requests for documents or turnover of estate property (such as bank accounts and/or tax returns). So, comply with the Trustee’s directives and all should be fine. Occasionally the Clerk will take more than 60 days to issue your discharge. Please be patient, but follow up with the clerk at 702-388-6633 if you have not received your Chapter 7 discharge after 90 days passes from your 341(a) hearing. Please also be aware that our office has no control over the Bankruptcy Court issuing discharge certificates.

Chapter 11 - Reorganization: This Chapter of the U.S. Bankruptcy Code is available to individuals, businesses and other entities, but is primarily intended to allow an ongoing business to restructure its debts. Successful reorganization is dependent on the debtor filing what is called a "reorganization plan" and obtaining the acceptance of creditors and approval by the Court for such a plan.

Chapter 13 - Adjustment of Debts for an Individual with Regular Income: This Chapter of the U.S. Bankruptcy Code provides a court-supervised method for a debtor to pay back creditors over a period of time of up to five years. The debtor files a plan for repayment with the bankruptcy petition or soon thereafter. Payments must begin within thirty days after the case has begun. The payments are made to a Trustee who will begin paying the creditors after the plan has been approved by the Court.

In a Chapter 13 the Clerk will enter a discharge after you have made all plan payments in accordance with your Chapter 13 plan. This generally takes place a few months after your final Chapter 13 payment has been made since the Trustee's Office performs an accounting and final distribution task. Please be patient and understand that our office has no control over issuing your Chapter 13 discharge. However, if your plan is paid in full and you have not received your discharge after three to four months, please contact the Clerks office at 702-388-6633.