Selecting What Bankruptcy Chapter to File

Selecting What Bankruptcy Chapter to FileThere are a few different types of bankruptcies that you can file. Each form of bankruptcy has its own qualifications and comes with some benefits and pitfalls. This means that before you even decide to file for bankruptcy you should speak with one of the experienced bankruptcy attorneys at Allmand Law to weigh your options and get a professional opinion.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is a good solution if you don’t have any assets that can be considered “non exempt” and can then be sold to pay off your debts. But if you’ve filed for a bankruptcy within the past eight years and had your debts discharged then you aren’t able to file for a Chapter 7 bankruptcy.

Chapter 13 Bankruptcy

A Chapter 13 bankruptcy does not discharge all of your debts like a Chapter 7 does, it actually reorganizes your debts to create monthly payments that are manageable. This does not mean that you’ll have to pay all of your debts though, your creditors will typically discount the amount you owe by quite a lot. The real advantage here is that debts that are not “erasable” by a bankruptcy can be stretched out over many years and smaller payments, making them more manageable.

Chapter 11 Bankruptcy

A Chapter 11 bankruptcy might be a good idea of you don’t qualify for a Chapter 13 and you have some assets you’re not willing to lose. A Chapter 11 bankruptcy is a bit complicated and more rare option for an individual but may be just what you need if you qualify.

By | 2017-12-13T02:59:50+00:00 October 17th, 2011|Bankruptcy|Comments Off on Selecting What Bankruptcy Chapter to File