In Chapter 7 bankruptcy, also know as "liquidation bankruptcy", a debtor may discharge some or all of his or her debts while keeping certain ("exempt") or all of the debtor's properties.  A Chapter 7 case does not involve the filing of a plan of repayment. Instead, a bankruptcy trustee assigned to the case gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay debtor's creditors.

In Chapter 13 bankruptcy, a debtor may keep some or all of his or her properties, but pay back all or a portion of the debts over a three to five-year period. Because a debtor has to pay most of his or her debts over time, Chapter 13 bankruptcy also called "reorganization bankruptcy". However, Chapter 13 bankruptcy is not for everyone because the debtor requires to commit his or her disposable income to repay some or all debts. The Debtor also has to prove to the court that he or she can afford to meet payment obligations. If debtor's income is irregular or too low, the court might not confirm debtor's chapter 13 plan.

Chapter 11

Chapter 11 bankruptcy designed mostly to allow struggling business to restructure their debt and to maximize the return to its creditors. In Chapter 11, the debtor continue to operate his or her business while preparing a plan of either reorganization or liquidation. As oppose to Chapter 7 bankruptcy, there is often no trustee in Chapter 11 bankruptcy unless the court finds that the one is necessary to replace the debtor and to run the business. In order to emerge from Chapter 11, creditors and the court must approve debtor's plan that must provide repayment of all or a portion of the debts.

One of the most common reasons people file bankruptcy is to get a "discharge". The court's issued discharge releases a debtor from personal liability to repay his or her debt. This means that the debtor is not legally required to repay the debts that were discharged.  

Chapter 7


Chapter 13



Attorney's Education & Experience

I have been handling bankruptcy cases, including Chapter 7, Chapter 13 and complex Chapter 11 cases. Although, bankruptcy is one of my main areas of practice, I always take time to assess clients' situation and provide various alternatives to bankruptcy, including settlement options and loan modification. I also have been handling various real estate matters, including real estate transfers, residential/commercial rental and leasing, and landlord/tenant disputes.

I graduated from USC Gould School of Law with a Master of Laws degree. Since then, I dedicated my career to real estate and bankruptcy law.


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┬ęGregory Grigoryants, Attorney at Law 2014 All rights reserved

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