There are different types of bankruptcy which address specific types of situations a person or business might face. Businesses will mostly like need to file for a Chapter 11 bankruptcy. However, those with personal debt will choose between Chapter 7 or Chapter 13 bankruptcy

Chapter 7 Bankruptcy

This type of bankruptcy is for individuals who have so much debt that they need it to be eliminated. Chapter 7 bankruptcy is a complicated process because it requires a lengthy process and communication with all a person’s creditors. However, once completed, it can give a person a fresh financial start. A business may also claim this type of bankruptcy if it ceases all operations and sells assets to pay off creditors.

Chapter 13 Bankruptcy

This form of bankruptcy does not eliminate an individual’s debt. Instead, it should be viewed as a structure a method of repayment for your debts. A bankruptcy court will help individuals filing for Chapter 13 bankruptcy create a monthly payment plan which allows them to pay their debt off to the best of their ability over time. This process typically last for 3 to 5 years.

Chapter 11 Bankruptcy

This type of bankruptcy allows for a business to restructure their debts while maintaining control of its operations.

Bankruptcy Alternatives

for bankruptcy is a major commitment, and this method of paying of debt is not for everyone. For those who do not wish to file for bankruptcy, there are alternative options. If you contact a bankruptcy attorney, you’ll receive the help of an individual who is familiar with the process of paying off debts. They will help you decide if bankruptcy is right for you and may even help you change your mind about the process! A bankruptcy attorney will examine your debts and help you decide which ones will be “forgiven” through bankruptcy and which ones you will still be responsible for.

Find a bankruptcy near you today through our directory.