Bankruptcy laws can be very perplexing and complicated. Attempting to file for bankruptcy without any legal representative could cause a person to make major mistakes that could be both time and money consuming. A bankruptcy attorney knows about the important and applicable specifics and details that a bankruptcy case may involve. Whether a person needs Chapter 7, Chapter 11, or Chapter 13 bankruptcy help, there are bankruptcy attorneys are available and willing to assist and fight most cases.
There were approximately 1,071,932 bankruptcy filings in the United States during 2013:
• 729,326 Chapter 7 bankruptcies
• 8,980 Chapter 11 bankruptcies
• 333,626 Chapter 13 bankruptcies
Chapter 11 is the most complex and complicated bankruptcy filing and the one that most troubled businesses end up facing; however, some individuals may also end up having to file it as well. During a Chapter 11 bankruptcy filing, the debtor remains in possession of all assets and creates a reorganization plan to pay off creditors.
During a Chapter 13 bankruptcy, the filer is usually allowed to keep their property and possessions, after agreeing to a comply with a plan to pay off a certain amount of the debt, typically over a period of three to five years. There are limits and financial caps in regards to the amount of debt involved.
During a Chapter 7 ban
kruptcy, which often takes around six months to complete, there is a possibility that a person may be able to salvage some personal items and real estate, depending on the laws and regulations in the associated state of residency. Instead of formulating a payment plan, during a Chapter 7 bankruptcy, a person can liquidate their bills. Chapter 7 bankruptcy is what most people are referring to when they claim to be going broke and filing for bankruptcy. Businesses will usually try to avoid Chapter 7 bankruptcies because it is impossible for business operations to prevail under such circumstances. Any income that is accumulated upon the settling and resolving of the bankruptcy filing is not included as a part of the bankruptcy, in which case, the debtor can keep it. The current fee for filing a Chapter 7 bankruptcy in the United States is $306.
If you find yourself facing financial troubles that you can’t seem to get out of on your own, it may be worthwhile to consult with an attorney for bankruptcy help.