Bankruptcy Law

Kovach Law Firm Consumer Bankruptcy LawPersons seeking relief under the Bankruptcy Code may file a petition for relief under a number of different chapters of the Code, depending on circumstances. Consumers usually file Chapter 7 or Chapter 13.

Chapter 7: Liquidation

Liquidation under a Chapter 7 filing is the most common form of bankruptcy. Liquidation involves the appointment of a trustee who collects the non-exempt property of the debtor, sells it and distributes the proceeds to the creditors. Because each state allows for debtors to keep essential property, most Chapter 7 cases are “no asset” cases, meaning that there are not sufficient non-exempt assets to fund a distribution to creditors.

Chapter 13: Reorganization

Bankruptcy under Chapter 13 is a more complex reorganization and involves allowing the debtor to keep some or all of his or her property and to use future earnings to pay off creditors. 

Kovach Law Firm, P.A.

PO Box 635
303 Tompkins St
Inverness, FL 34451

(352) 341-5557
(352) 341-5558 fax

Michael T. Kovach, Jr.
Attorney at Law