Bankruptcy is a process that many people do not look forward to filing. It can carry serious consequences, such as lower your credit score, make it harder to get specific types of loans, and result in the loss of assets. However, bankruptcy is one way that allows you to get rid of your debt so that you can move forward in your life with a new financial slate. If you are thinking of filing for bankruptcy, be sure to talk to a qualified and experienced lawyer so that you can receive in-depth legal assistance throughout the entire process. Speaking with a lawyer who has years of experience handling bankruptcy cases can not only give you peace of mind, but can allow you to build a clear path forward as you decide if bankruptcy is the right move for you. Before you decide that you need to file for bankruptcy, become familiar with some of the common types of bankruptcy that you may be able to apply for.
Chapter 7
One of the most common types of bankruptcy that many people struggling with debt file for is Chapter 7 bankruptcy. Chapter 7 bankruptcy allows debtors to get rid of many different types of unsecured debt. Debt in this category includes credit card debt, utility bills, and medical debt. If you believe that your debt falls under this, then you may be eligible to file. Chapter 7 is also advantageous because it allows debtors to complete the process fairly quickly, in about three to six months. If you want to finish the bankruptcy process, then see if you qualify for this type of bankruptcy.
Chapter 11
Chapter 11 is known as reorganization bankruptcy, and is applicable for businesses. Like the name implies it allows debtors to reorganize their debts and agree to a repayment plan. This may be suitable for you if you are a business owner and want your business to continue. However, you may want to consider this type of bankruptcy if you are a partnership or small business owner.
Chapter 13
Another common form of bankruptcy is Chapter 13. This type of bankruptcy allows debtors to keep their home, as well as more of their earnings and assets, as a seasoned bankruptcy lawyer like one from The Law Offices of Neil Crane can explain. It helps stall the foreclosure process so debtors can stay in their home, and prevents harassment from debt collectors. A downside of this bankruptcy is that it takes a few years to complete, which is much longer than Chapter 7. It involves debtors agreeing to a repayment plan in exchange for keeping their assets.
When you need legal advice right away regarding bankruptcy, be sure to talk to a lawyer so that you can get the support that you need and deserve. Navigating bankruptcy is not easy, and for the average who is not familiar with bankruptcy law it can feel overwhelming. When you hire a lawyer, you do not have to go through the process alone. For more information, request a consultation with a lawyer that you can trust to help you go through the scenario much more efficiently.