Bankruptcy
Chapter 7: Chapter 7 allows debtors who qualify to discharge certain unsecured debts. Chapter 7 is referred to as a “fresh start” bankruptcy!
- An unsecured debt is a loan that is not backed by collateral. For example, credit card debt, unsecured personal loan.
Chapter 13: Chapter 13 is a payment plan, which can last from 3 to 5 years. Upon successful completion of the payment plan, then your unsecured debts will be eliminated.
Chapter 11: Chapter 11 is generally referred to as a “reorganization” bankruptcy. Chapter 11 is generally used to reorganize a business, whether it’s a sole proprietor, a corporation, or a partnership.
Who Should Consider Bankruptcy?
Chapter 7 – A Liquidation bankruptcy
- Did you lose your job?
- Do you have high medical bills or credit card debts?
- Do you have no assets or a few assets that you want to keep?
Chapter 13 – A payment plan bankruptcy
- Do you have property you want to keep?
- Do you have consistent income to pay your debts over 3 years? Over 5 years?
- Are you behind on your mortgage payments?
Contact us and let us know your needs!