Bankruptcy
Bankruptcy is a big decision. It is definitely not for everyone, but for the right client, it can provide a chance to start their financial life over.
There are three chapters of bankruptcy that most people have heard of.
Chapter 7 is the most common type of bankruptcy; it is sometimes referred to as “fresh start bankruptcy,” or “straight bankruptcy.” The purpose of Chapter 7 is to provide you with a fresh start by wiping out all qualifying debts including credit cards, medical bills, law suits as well as a variety of other debts. In chapter 7 there is usually no repayment required for unsecured debts, your debts are wiped out permanently. The entire process usually takes less than 5 months to complete.
Chapter 11 bankruptcy is something that a lot of us have heard about in the media because of the automaker’s troubles. Chapter 11 bankruptcy is a business bankruptcy. I do not practice Chapter 11 bankruptcy, so I am unable to assist you in a business bankruptcy case, however am able to refer you to a competent attorney if you need Chapter 11 protection.
Chapter 13 bankruptcy allows a person to consolidate their debts while making monthly payments to the bankruptcy trustee. A payment plan is proposed which repays the debt over a three to five year period. Chapter 13 bankruptcy is a way to avoid foreclosure or repossession of a vehicle and is often called the “wage-earner’s plan”.
Only a competent professional can advise you what chapter of bankruptcy that you should file.
