Chapter 13 can be used to save a small business provided  the business is a proprietorship (not incorporated and not a partnership) and provided the debt limitations of a Chapter 13 are met.   A Business Chapter 13 works best if most of the debts are unsecured and those debts that are secured can be repaid within a 5 year period.  Restructuring loans on equipment and vehicl

Growing up in El Paso and being Hispanic, I was brought up with the mentality that Bankruptcy was wrong.  Since I started working at Diamond Law almost 3 years ago, my mentality on Bankruptcy has changed.  Bankruptcy to so many people is a scary step to take. After working with so many clients throughout these 3 years I have witnessed the relief bankruptcy (Ch 7 and Ch 13) has brought to them. 

Many clients come into our office hoping that we can lower their monthly mortgage payments. Unfortunately when the house is their homestead we do not have the means to modify the loan within the Bankruptcy. However, many banks are now offering loan modifications to people who are in Bankruptcy.

Earlier this month there was a great deal of hoopla by both politicians and the banking industry about the changes being made so that people facing foreclosure could deal with their situation better; either by refinancing, modifying their home loan or in extreme cases making an orderly  transition when the homeowner needs to surrender the property back to the Lender. 

Multiple banks and multiple states have entered into a settlement agreement over how the banks handled foreclosure or were in the process of handling foreclosures.  Finally many Banks being made accountable for their actions.

Filing for Bankruptcy was something that I never dreamed would “happen” to me.  I worked hard to pay my bills and seldom even had a late payment.  My husband made a good salary.  Life was good.
Then one day I found myself in the middle of a messy divorce and learning about my soon to be ex-husband’s gambling problem.   I ended up with $15,000 in credit card debt (my half) and only one income.  I had 2 small kids and made just enough to pay the mortgage, utilities and keep food in the house. 

Practicing bankruptcy law in the greater Washington, DC area, we often get this question from nervous government employees and defense contractors: "If I file bankruptcy, will I lose my security clearance?"

The answer is: It's not the bankruptcy itself that is the problem. It's the underlying circumstances leading to the bankruptcy that is the determining factor.

 
 
Filing bankruptcy will not, in and of itself, cause a person to lose his/her security clearance.