Where other efforts fall short, some financial situations may necessitate a bankruptcy filing. There are different types of bankruptcies that may apply to different situations, and which allow the individual to get rid of different kinds of debts, or to negotiate.
Insolvent individuals may be eligible for either a Chapter 7 or a Chapter 13 bankruptcy. Read below to discover the difference.
Known as a “fresh start” bankruptcy, a Chapter 7 filing may allow you to get rid of your commercial debt while at the same time allowing you to keep your house and your car. There is no shame in filing for Chapter 7 Bankruptcy; many people simply cannot handle all of their debt because of circumstances beyond their control. Contact Josh today for your free initial consultation to see if a Chapter 7 filing is right for you.
The purpose of a Chapter 13 filing is to obtain the opportunity to repay some or all of the debts in your name, but with more favorable circumstances, for example, lower or no interest. Unlike Chapter 7, which involves the liquidation of assets, this process involves restructuring debts allowing debtors to use whatever income they may have in the next five years to pay off their creditors.
A Chapter 13 Bankruptcy may be the right thing for you if you have a regular income, and thus can afford to request such adjustments or reductions. Josh Mauss offers free bankruptcy consultations to determine if a Chapter 13 filing is right for you.
