The possibility of bankruptcy may bring undue anxiety, as well as several questions. A few tips on the types of bankruptcy can make it much easier to understand.
There are different types of bankruptcy that may apply to your situation. Chapter 7 bankruptcy liquidates most assets belonging to a debtor. They are then are taken over by a trustee who sells them to settle creditors’ debts. Chapter 11 bankruptcy allows debtors to reorganize assets and liabilities to keep most of what’s theirs. Chapter 12 is used exclusively by family-owned businesses, while Chapter 13 bankruptcies help people with steady incomes manage with their debts.
When is the right time to file for bankruptcy?
It is impossible to choose the perfect time, but the right time has perhaps come if personal assets are far outpaced by debts and other liabilities. If creditors are constantly harassing you and threatening wage garnishment, bankruptcy may be better than trying to resolves debts on your own.
How do I file for bankruptcy?
A petition must be filed with the proper jurisdiction of a U.S. bankruptcy court. The petition must be complete and reflect a state of finances that bankruptcy can recover. A person can file on their own, but the chances of a successful discharge of debts may improve with legal representation and financial advice. An attorney can help assemble and review your bankruptcy petition, as well as determine which type of bankruptcy will best protect the debtor’s financial interests and personal property.
Are you ready to take the next step to get back on solid fiscal footing? Learn how today.