What Are The Different Types Of Bankruptcy?

Perhaps you have gotten to the point of no return concerning your finances, and you do not know what to do. Your credit score has taken a nosedive. There is no doubt that you may be working as much overtime as possible every chance you get, so you can make ends meet. 

• Is your debt causing you to work long, hard hours to buy the essentials for your family to live?
• Is your debt causing you to work two or more jobs with no days off for rest? 
• Do you see your financial situation getting worse instead of better as time passes? 

For whatever reason, many of our clients tell us that the more they work and the more money they make, their financial situation only worsens. Thus, they feel all their hard work is in vain. Financial situations such as these are frustrating, scary, depressing, and many of our clients feel there is no hope for them. We are here to tell you that there is help for you.

• Money is the number one thing that breaks up relationships and marriages.
• Never allow the all-mighty dollar to ruin your family relationships.
• Never let money damage your physical, mental, and emotional health. Creditors are not worth it.
• Never work your life away due to indebtedness to creditors. 

Bankruptcy may be your only option, but an excellent opportunity to give you a fresh financial start. You have a chance to settle your debt and work with your creditors. We are here to tell you that there may be options and hope for your finances. However, we cannot help you until you give us a call. We can stop harassing creditor calls and possibly stop the threats of home foreclosures or repossessions. 

Your primary goal is to make sure you have a home to live in, a car to drive to work, utilities remain on, and you have food. It would be best to continue to have these essentials to make life easier while you navigate through the bankruptcy process.  We know that bad things happen to good people all the time. Credit card debt may not be your problem. Perhaps you are going through a medical crisis and are drowning in medical debt. Whatever your situation is, we know we can help you. 

Contrary to what you may have heard, filing for bankruptcy is not the end of the world!

Bankruptcy is an excellent way to give people in too much debt a fresh start and a way out of a bad financial situation. Bankruptcy may or may not be the right course of action for you. You will never know what bankruptcy can do for you until you make a free, no-obligation call to this bankruptcy attorney.

The Different Types of Bankruptcy

Chapter 7 Bankruptcy or Liquidation

If you are in a situation where you cannot pay back your debt, Chapter 7 is a quick process that essentially throws away all of your dischargeable debt such as credit cards. If you own property, it is a possibility that you could lose some or a portion of your property. The sale of your property pays back what you owe to your creditors. However, most people do not have any assets or so little that there is nothing to sell. Your attorney must calculate if you have enough income to pay off your unsecured debts like credit cards. 

• Medical debt is considered disposable debt. 
• A schedule is set in place to start paying off this debt. 
• The court gives you a specific time to pay this debt off. 

Your attorneys in the state of Alabama calculate a means test by evaluating your average household income compared to other households of the same size. Calculations cover the last six months. If your average income is below that of other homes the same size, you may file for Chapter 7 bankruptcy. 

Chapter 9 Bankruptcy

This type of bankruptcy is a repayment process set aside for municipalities such as cities, towns, and school districts to work on a repayment plan to repay creditors. 

Chapter 11 or Reorganization 

Chapter 11 Bankruptcy is a form of company reorganization of debt. As soon as you and your attorney structure a plan to pay off debt, your creditors, along with the court, must approve the plan. If your plan is approved, you will continue running your company while paying off creditors. This bankruptcy depends on what type of business you run. Is your company a,

• A sole proprietorship means you remain liable for business debts. 
• Partnership, LLC is a separate legal entity.
• A corporation is a separate legal entity.

Through the efforts of your bankruptcy attorney, they can direct you to the type of business bankruptcy option that is best for your situation. Assets from your business are liquidated to pay your creditors. As an owner of this type of business, you are set apart from your company. Thus, you are not personally liable for the bankruptcy. 

As you can see, it takes the expertise of your bankruptcy attorney to work through all the complicated and complex details of bankruptcy and get you or your business out of debt. Bankruptcy does impact your credit report and remains on your credit report for about ten years, but it is such a small price to pay for a fresh new start in life. Contact 18 wheeler accident lawyer San Antonio for compensation if you injured with a heavy truck.

Chapter 12 Bankruptcy and Family Farmers

Chapter 12 is a structured repayment plan that allows farmers to keep their assets and halts any foreclosure processes. This plan is very flexible and allows for a higher limit on debt.  

Chapter 13 Bankruptcy is a Repayment Plan

Filing for Chapter 13 bankruptcy is similar to filing for Chapter 7. The difference is that Chapter 13 allows you to reorganize your debt into a list of who gets paid first. This type of bankruptcy can take five years or less to complete. While you may lose your home when filing Chapter 7, you cannot lose your home or car when filing Chapter 13. You pay back your unsecured debt. Arrangements may look like this as follows after the judge approves the plan.

• Creditors agree to take a specific percentage of your debt.
• You can set aside a certain amount of money, and your trustee divides up this amount of money to pay your creditors. 
• You pay off your unsecured debt over time according to what you can afford. 
• A monthly payment schedule is set into place based on what you can afford. 

Chapter 15, as it Relates to Foreign Lands

When you file for Chapter 15, you deal with international bankruptcy issues. Your foreign creditors have access to bankruptcy courts in the United States. 

What is the Main Cause of Bankruptcy?

Credit cards are one of the most accessible pitfalls for indebtedness. Credit card debt occurs when your cards have too high an interest rate, penalties, late fees, set up fees, annual fees, and more. There are too many fees attached to many credit cards, making it all but possible for consumers to gain any headway paying off these debts.  

If you get behind in making monthly credit card payments, the lenders may opt to make all efforts available to collect what you owe. These credit card companies can, 

• Garnish your wages
• Start a lawsuit 
• Repossess your vehicle 
• Foreclose on your home
• Inundate you with harassing phone calls and threaten any of the above
• And make your life miserable 

A bankruptcy attorney can stop all harassing phone calls from your creditors and protect your consumer rights. If creditors do not follow your attorney’s directives, you can sue the creditor and undoubtedly win your lawsuit. 

Do Not Fear a Process that Gives You a Fresh Financial Start

• You may fear the bankruptcy process mainly because you may have heard incorrect information from other people.  
• You may fear your creditors and that they may threaten you.  
• You may worry about what your credit report shows after filing for bankruptcy. 
• You may be too embarrassed to file bankruptcy. 
• You, no doubt, do not understand the bankruptcy laws.

Why wait while your financial situation causes you more agony? 

Being in debt not only hits your credit report and score, but bankruptcy also hurts those you love the most. Money is the one thing that breaks up relationships and marriages the most. Never let debt do this to you and your loved ones when you have options to get back onto a healthy financial path. We want to help you with a fresh start towards financial freedom. We understand that filing for bankruptcy is scary for most people. However, if you do not understand the laws of bankruptcy, you may be pleasantly surprised at why you waited so long before calling us for financial help. 

You are an individual who needs help. We never judge you or your situation. We have spent years devoting our time to consumers who deserve a second chance for a life free from debt. We remain by your side as we help you through the process of bankruptcy by guiding and directing your every move towards freedom from debt. 

Bankruptcy laws in individual states are much the same yet may differ in small ways, so you need to find out what is available for you in your state. If your finances and debt have you down, it never hurts to call a bankruptcy attorney to review your situation. This attorney listens, understands, and tells you if bankruptcy is the path for you. This attorney can explain the different types of bankruptcy and recommend what type fits your situation best, then start to work with you. 

Because of these fears you may have of bankruptcy, you may wait too long to seek legal counsel through a bankruptcy attorney. Please allow us to offer our help with filing for bankruptcy.

 Our seasoned, skilled, and experienced bankruptcy attorneys are waiting for your call today for financial help.