Bankruptcy Explained

Bankruptcy 101

Bankruptcy is a legal option available to honest people who are struggling with overwhelming debt. It’s a fresh start. There are different types of bankruptcy and it’s important to know and understand what each type means. Some will allow you to eliminate most or all of your debt. Others allow individuals or businesses to repay a portion of their debts with an agreed-to schedule. Learn about which option may be best for your situation.

Chapter 7

Many people contemplating filing bankruptcy need to know whether Chapter 7 bankruptcy is the best option for them. So in order to make that call, they need to be clear on what Chapter 7 bankruptcy is and what filing for it involves.

Chapter 13

Before you can assess whether or not to file for a Chapter 13 bankruptcy, it’s imperative to know exactly what that means. Chapter 13 allows you to repay creditors in a 3-5 year plan, many times at 0% interest. Usually, if you have filed for Chapter 13, you will only have to pay your creditors a percentage of what you actually owe. Most importantly, you get to keep all of your assets. You will get put on either a weekly or monthly payment plan that is designed around your personal budget and pay schedule.

Chapter 11

If you’re a small business falling into insurmountable debt, filing for a Chapter 11 bankruptcy, commonly known as reorganization bankruptcy, might be your best option. It can be costly, time-consuming, and complicated, which is why some small businesses avoid it. But, it’s the only bankruptcy option that allows a business to stay in business. Chapter 11 allows a business to restructure and continue to operate. Learn more here.

If you have questions, visit our Frequently Asked Questions page, and feel free to contact us for a consultation.