Options for a Fresh Start
Individuals and businesses under severe financial strain due to debt may consider filing for bankruptcy, which helps people get out from under their debt and gain a fresh start. Chapter 7 and Chapter 13 of the Bankruptcy Code are the most common for individual bankruptcy. Chapter 11 covers business bankruptcy. Bankruptcy attorneys at the Law Offices of Jill Michaels can help you through the process.
Chapter 7 – Liquidation: Under Chapter 7 bankruptcy, the individual is eventually released from liability of certain debts. If assets are available, they are taken over, sold for profit and used to pay outstanding debts to creditors.
Chapter 13 – Adjustment of Debts of an Individual with Regular Income: Filing for Chapter 13 bankruptcy is more appropriate for someone with a regular income and who can continue paying debts. The person doesn’t lose property they own and a plan is created to help him/her pay their creditors over a period of time.
Chapter 11 – Reorganization: Chapter 11 bankruptcy may be appropriate for businesses wishing to continue operating while repaying creditors. The plan allows businesses to file a plan of reorganization in which they repay a portion of their debts, while others are discharged.
With the help of the attorneys at the Law Offices of Jill Michaels, individuals are able to face bankruptcy with confidence. Contact Us to discuss your options with a bankruptcy attorney.