Bankruptcy

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Bankruptcy

The Bankruptcy process can be emotionally overwhelming, puzzling and time consuming. But it can also be the best course of action for those with too much personal or business debt. Bankruptcy law allows certain debtors to free themselves (to be discharged) of the financial obligations they have accumulated, after their assets are distributed, even if their debts have not been paid in full.

There are two main avenues for individuals declaring bankruptcy – Chapter 7 or Chapter 13. Chapter 7 is commonly known as the liquidation route, meaning all debts are eliminated, whereas Chapter 13 is often referred to as a repayment, meaning you make payments toward your debt based on income and size of debt. If you are a business owner, you may be able to file a Chapter 11 bankruptcy. Chapter 11 is commonly known as “reorganization” or “corporate” bankruptcy. Chapter 11 is used primarily by business debtors, but sometimes can be used by individuals with substantial debts and assets. Chapter 11 is a form of corporate financial reorganization which typically allows debtor companies to stay in business and use revenue generated to resolve debts with creditors.

In the majority of cases, bankruptcy is voluntarily initiated by the debtor. Retaining a bankruptcy attorney to guide you through the bankruptcy process will ensure that you file and execute your bankruptcy correctly. Miscalculations in the bankruptcy process can mean the difference between keeping important assets like your home or vehicle, or paying too much or too little in the restructuring process.

Whether your case is regarding personal or business bankruptcy, 1-800-LAW-FIRM has a network attorney that is an expert in each area. If you are interested in learning more, please click the link that best suits your bankruptcy matter.