If you are facing mounting debt without the ability to pay back your creditors, bankruptcy may be an option you are considering. Although bankruptcy is an umbrella term, in this article, you will learn about three different types of bankruptcy that a Mount Juliet attorney can help you with.
It is important for you to get an idea of the type of bankruptcy filing that is most suitable for your particular situation. Each type of bankruptcy serves different needs. Here is a brief explanation of three types of bankruptcy filings to help you understand which may be the one you could pursue:
1. Chapter 13 – debt reorganization
Those with a steady income, you may be a good candidate for a Chapter 13 bankruptcy. In this type of filing, you are given the opportunity to reorganize your debts so that you can keep assets such as your home and your car. You will have a Chapter 13 payment plan, and generally, this type of filing gives you three to five years to repay your debt under the new plan.
2. Chapter 7 – debt liquidation
Chapter 7 bankruptcy is the most common form of bankruptcy filing in the United States. With this type of filing, your debt is liquidated so you can have a fresh financial start. A Chapter 7 bankruptcy erases your financial obligations for qualifying debts. Certain types of debts may not be eligible for this type of bankruptcy filing, so it is important to speak with an attorney who has experience working with bankruptcy law.
3. Chapter 11 – bankruptcy for businesses
If you are a business owner with a business is struggling under the weight of crippling debt, Chapter 11 may be the way for you to start rebuilding financial freedom. In a Chapter 11 bankruptcy, you can continue to run your company and at the same time prevent your creditors from seizing assets. This is a debt reorganization that offers commercial protection. As this type of bankruptcy is quite complex, you will need to consult with an attorney to help you proceed.