If you are being harassed by creditors, trying to avoid foreclosure on your home, struggling with medical bills, or otherwise concerned about how you are going to be able to cover your monthly expenses, bankruptcy is a legal solution that can provide you with the fresh start you need. There is no shame in asking for a little help when it comes to your financial difficulties. In fact, many people need a little boost from time to time. Bankruptcy laws exist so that people in tough financial spots are able to get out from underneath a mountain of a debt, restore their credit ratings, and look ahead to a brighter future.
It is important for you to know what to expect when filing for bankruptcy. The reality is that a lot of people are misinformed about how the bankruptcy process works in New Jersey and Pennsylvania. The bankruptcy process is also incredibly complicated and involves complex legal issues. For instance, there are a number of different bankruptcy options, depending on the circumstances of the person or entity filing for bankruptcy. The most common bankruptcies are Chapter 7, Chapter 13, and Chapter 11. An experienced bankruptcy and debt management attorney can assist you with the bankruptcy process and make sure that you understand the advantages and disadvantages of filing for a particular type of bankruptcy.
Here are some brief descriptions of these different types of bankruptcy:
Chapter 7 Bankruptcy
A Chapter 7 bankruptcy is a complete liquidation of unsecured debts. When an individual is unable to meet their financial obligations, it may be in their best interests to file for Chapter 7 and start with a clean slate. Chapter 7 also allows the debtor to protect some of their assets. A Chapter 7 bankruptcy case typically takes less than six months. However, there are limitations under Chapter 7, with certain types of secured debt not able to be discharged.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a complete reorganization of all debts, which can allow the debtor to work out a payment plan for repaying creditors. The bankruptcy court will oversee the repayment arrangement, with the debtor typically having no more than five years to pay off creditors. Chapter 13 is often a good option for debtors with significant loans and other types of secured debts that cannot be eliminated through Chapter 7.
Chapter 11 Bankruptcy
A Chapter 11 bankruptcy is most commonly filed by companies, but it is also an option for some individuals with debts greater than the limits imposed by Chapter 13. Chapter 11 allows for restructuring of debts so that a business can continue operating.
There are also several alternatives to bankruptcy, which can include debt settlement, debt consolidation, and mortgage and loan modifications. A creative debt management attorney can look over the details of your specific case and help you determine your best course of action.
If you are struggling with debts, you need to talk to a qualified bankruptcy and debt relief lawyer immediately. Joel R. Spivack, Esq., is an experienced bankruptcy attorney who can help you get out of debt. Contact Mr. Spivack now to schedule a free initial consultation.