What Bankruptcy Options are Available to Individuals?
When individuals and families find themselves facing overwhelming debt that they can no longer manage, filing for bankruptcy can provide a way for these individuals to get out of debt, escape hounding calls from creditors, and create a plan to rebuild their financial stability. There are two bankruptcy options available for private individuals or families that are looking to utilize bankruptcy protection to escape troubling financial situations: Chapter 7 bankruptcy and Chapter 13 bankruptcy.
About Chapter 7 Bankruptcy
Chapter 7 bankruptcy is often referred to as liquidation bankruptcy. This is because in a Chapter 7 bankruptcy filing, an individual can have many, if not all, of their dischargeable debts dismissed. In exchange, some of their assets may be sold, or liquidated, in order to pay back creditors. While the notion of having one’s assets sold to pay back creditors may be worrying for some, the reality is that if you work with an experienced bankruptcy lawyer, he or she will be able to utilize state and national bankruptcy exceptions to help protect most, if not all, of your assets. As such, in most cases your home, car, family heirlooms, and other important and meaningful property will likely be protected and kept exempted from liquidation.
About Chapter 13 Bankruptcy
Chapter 13 bankruptcy is available to both individuals and businesses, and rather than eliminating debts through the liquidation of assets, Chapter 13 bankruptcy instead helps individuals re-organize their debts into a manageable repayment plan, allowing the individual to pay off their debts to creditors over a number of years. Most individuals have somewhere between 36 and 60 months to repay their debts, and this time limit is based off the filing individual’s income. Depending on a number of different factors, individuals might pay back some, or even all, of their debts through their repayment plan.
Contact a Plano Bankruptcy Lawyer Today
If you are facing financial difficulties, filing for bankruptcy could provide you with the relief and the fresh start that you need. By contacting an experienced Plano bankruptcy lawyer at Gagnon, Peacock & Vereeke, P.C., you could get a better understanding of the different bankruptcy options that are available to you and determine which is better for your specific situation. Take the first step toward financial freedom today by calling (214) 317-4448.