Become familiar with bankruptcy and Chapter 11 choices…
Filing for bankruptcy can be a very stressful time for an individual. Suddenly, one is faced with understanding and acting upon information and jargon that have likely never been faced before.
In times like this, it’s a good idea to seek out experienced legal service providers or bankruptcy attorneys if you cannot face the situation on your own. Professionals like these can provide valuable bankruptcy information in your time of financial difficulty and prevent you from making decisions that may not be in your best financial interest.
While personal advice and counsel is always preferred, doing one’s own preliminary research to figure out the available options is also a good idea. Personal circumstances and individual situations of people filing for bankruptcy vary greatly, but there are two types of personal bankruptcy most commonly filed. The difference between these two are important to understand and will help you figure out your best course of action.
Chapter 7 Bankruptcy
This is one of the two most common forms of bankruptcy filed. It is also known as liquidation. This option is for people who have very little assets or property and whose monthly income is just enough to cover their basic living expenses. It’s also a good option for those who want quick relief from creditors that are pursuing them. Filing for Chapter 7 is also the cheapest and fastest option, as the entire process can move through the legal system in as little as 3 months. Any person or company residing in the US is entitled to file for Chapter 7 bankruptcy.
Chapter 13 Bankruptcy
This second most common type of bankruptcy is also known as repayment. This case is for people who do possess assets that they don’t want to have liquidated by creditors. Under this plan, you will have to make a monthly payment to your bankruptcy trustee, usually for a period of three to five years. However, this payment will be determined by your budget, and it is usually a much more manageable sum than what you were expected to pay before. An individual or married couple can file for Chapter 13 bankruptcy. Corporations are excluded from filing though, as are those who do not have a regular income, because it is impossible to determine a repayment plan without one.
Filing for bankruptcy, while not a desired plan of action, doesn’t have to be the end of one’s financial future. It is important to understand your options and seek out the right professional advice.
One of Mary’s favorite things to write about is finances. For more information regarding bankruptcy information, please visit http://www.maceybankruptcylaw.com/
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