At Bailey Law Offices, we understand that filing bankruptcy is hard for clients and a last resort for some filers. We can assist you through the process of making bankruptcy easy for you.
One of the first steps to filing bankruptcy is to determine which bankruptcy will best fit your needs.
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Chapter 7 Bankruptcy
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Chapter 7 bankruptcy is known as a liquidation bankruptcy. This bankruptcy allows you to liquidate the assets that you have, if applicable, to pay back your creditors.
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There is no monthly payment plan for years to come– but you must qualify for this bankruptcy.
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Chapter 13 Bankruptcy
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Chapter 13 bankruptcy is known as a reorganization bankruptcy that will assist debtor is organizing their debt;
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Debtors will have to pay monthly payment to the Bankruptcy Court for a period of three (3) to five (5) years – the terms, monthly payment, and length of time concerning the Chapter 13 plan payments are determined on a case to case basis;
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This bankruptcy is contingent on excess income available after the calculation of your personal budget;
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Chapter 13 bankruptcy can ASSIST in stopping a foreclosure on your home or a repossession on your vehicle.
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Chapter 11 Bankruptcy
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Chapter 11 bankruptcy is similar to a Chapter 13 bankruptcy but it is for business owners’
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You will be able to operate your business under Chapter 11 bankruptcy but the Federal Bankruptcy court will approve a plan to pay your creditors bank;
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There is not a trustee assigned to a Chapter 11 bankruptcy, unless the Court deems otherwise. If a Trustee is assigned to your case, then the trustee would take control of your business.
Please note, that if you have filed bankruptcy before than you may be limited on the filing of another bankruptcy case. Consult with a lawyer from our team concerning this matter.
If you file bankruptcy then it can appear on your credit report and could effect the ability to obtain debt in the future.
For further questions while wondering if bankruptcy is right for you, schedule a free consultation with our office.
