Businesses and individuals alike have many different options when it comes to filing for bankruptcy. If you’ve found that you are too far into debt and cannot get out on your own, you may be interested in filing for bankruptcy, and the first person you should speak with is a bankruptcy attorney. There are three main types of bankruptcy that you can file for, depending on your financial situation and how the bankruptcy is going to work. The main three are Chapter 7 bankruptcy, Chapter 11 bankruptcy, and Chapter 13 bankruptcy.
Chapter 7 Bankruptcy
A Chapter 7 bankruptcy is for those who have a large amount of debts and no way to repay it. It is for those who have an income below the median income for their state, and it entails selling off non-essential assets to cover the debts that they owe. This can allow the person to keep their home from foreclosure while still having their debts repaid.
Chapter 11 Bankruptcy
With a Chapter 11 bankruptcy, you would work with a Chapter 11 Bankruptcy Attorney to come up with a restructure plan to pay off the debts owed by a business. This is mostly used so the owner does not lose everything they own, and it can end in the debtors owning the business instead of the owner so they can recuperate their losses. A Chapter 11 Bankruptcy Attorney can work with you to see if this would be the right chapter of bankruptcy to file if you own a business.
Chapter 13 Bankruptcy
A Chapter 13 bankruptcy is when the individual’s debts are consolidated into one large amount. This amount is then separated into monthly installments that the individual can afford, and the entire amount will be paid off within three to five years. This is used when a person has a large amount of debts, but they do not fall under the median income for the state.
Your lawyer can help you decide which one of these will work for your situation and give you a good outcome. They will work to help you set up your bankruptcy plan, get the plan approved by a judge, and handle your creditors while the bankruptcy processes. By working with a lawyer, you can ensure that everything is done correctly and you will have a higher chance of your bankruptcy being approved and being successful. Visit website for more information.
