A Bankruptcy Lawyer Explains All the Different Chapters of Bankruptcy
Aside from bankruptcy lawyers, most people don’t know much about the different chapters and types of bankruptcy. All they hear is that so-and-so filed bankruptcy or such-and-such company went bankrupt. Maybe they think visiting a bankruptcy lawyer would look shameful, but in all honesty, bankruptcy happens all the time and in many forms.
The more you know about your options, the more likely you are to find some relief from your debt. Some people think relief starts when you talk to a law firm, but informing yourself of the facts will give you the confidence you need to reach out to a bankruptcy law firm. Let a bankruptcy lawyer give you the ins and outs of all the different forms of bankruptcy.
Chapter 7 Bankruptcy
The most common form of bankruptcy for individuals, Chapter 7 bankruptcy, gives you the opportunity to completely erase your unsecured debt. Unsecured debt includes credit card debt or any other debt not attached to property. A creditor can still foreclose on your home to repay a mortgage or repossess your car to pay off the money owed on your car loan, but Chapter 7 bankruptcy is the best form of debt relief available to individuals.
Chapter 13 Bankruptcy
If Chapter 7 bankruptcy acts like a form of debt liquidation, Chapter 13 bankruptcy gives you an opportunity to pay off your debt. When filing Chapter 13, you get to keep some of your larger assets, such as your house and your car. You will form a payment plan that the court must approve. With this plan, the debtor typically pays back creditors over the course of three to five years.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy benefits businesses and individuals alike. Similarly to Chapter 13, the debtor must still pay off a portion of his or her debts. If a corporation files bankruptcy, the business must reorganize and return the business to profitability in a court-mandated period of time.
Chapter 9 Bankruptcy
Only available to municipalities, Chapter 9 bankruptcy allows cities, towns, counties, school districts, and other public districts to adjust their debts. These bankruptcies often result in these municipalities reducing their principal or interest or refinancing their loans.
Contact a Groce & DeArmon, P.C. Bankruptcy Lawyer Today
As you can see, bankruptcy lawyers help people and businesses in a few unique ways. These laws were created to help people survive and continue on after falling victim to difficult times and massive debt. If you believe you can also benefit from speaking with a bankruptcy lawyer, contact one at Groce & DeArmon, P.C. law firm today.