Deciding to file for bankruptcy is not easy. It sometimes takes a lot of time to think about and choose whether or not this is a good option for you. An experienced bankruptcy lawyer, will know the ins and outs of bankruptcy laws in your state and how to help you navigate through this difficult time. Your lawyer will be caring, empathetic, and discreet when speaking about your finances and helping you choose what is the best thing for you and your family. This can be a scary time, but do not put speaking with a lawyer off. The sooner you begin to address the issues at hand, the faster you can come to a resolution for everything you are going through. Continue reading to see the different types of bankruptcy there are and which, if any, you may qualify filing for.
Chapter 7 Bankruptcy: Liquidation
This is the best option for individuals who are unable to pay their debts and just want to get a completely fresh financial start. It will take a hit to your credit, but after you liquidate your assets and declare Chapter 7, things start to get better fairly quickly.
Chapter 13 Bankruptcy: Reorganization
Chapter 13 is good for people who make too much money to declare Chapter 7 bankruptcy. It puts the individual on a payment plan that is doable with what they make and what they have. After 3-5 years of repaying debts, they can be forgiven.
Chapter 9 Bankruptcy: Municipalities
This bankruptcy is for towns, cities, counties, or even school districts. They file for bankruptcy to help slow debt collection.
Chapter 12 Bankruptcy: Farmers and Fisherman
This form of bankruptcy was created so that agricultural professions can find a way to pay their debts back within 3-5 years.
Chapter 11: Reorganization
Businesses or individuals can file for Chapter 11 bankruptcy. You do not have to liquidate all of your assets in this type of bankruptcy, but you do need to find a way to pay back your loans in a new way.
Chapter 15: Foreign Debts
Finally, this type of bankruptcy is meant to be used from country to country. If one country owes another money that cannot be paid back, they may file for Chapter 15.
Contact a Bankruptcy Lawyer in Your State
No matter what your financial issues or needs are, you need to contact a lawyer who can help you figure out what steps to take next. It can feel like there is no way to regain financial freedom, but there is always hope. An experienced bankruptcy lawyer can help look at your assets, your income, and your debts to determine what type of filing could be right for you — if any. It is good to have someone on your side who knows the laws of the state and will have your best interest at heart throughout the entire process.