When bills start to pile up that you cannot pay, debt collection agencies start knocking on your door or the bank begins foreclosure proceedings, it may be time to consider filing for bankruptcy.
Bankruptcy is a federally protected program that can be used by both businesses and individuals. Bankruptcy allows for the sale of assets and reorganization of debt that allows for the elimination of debt.
Most Common Types of Bankruptcy
Chapter 7 is the most common form of bankruptcy filings.
For individuals, Chapter 7 allows those unable to pay their bills to walk away from their debt and start over.
For Businesses, Chapter 7 requires the business to liquidate assets and terminate their operations.
For individuals, Chapter 13 has the best benefits that the Federal Bankruptcy Code provides. A Chapter 13 allows an individual to keep possession of property, but in turn requires a payment plan to repay all or some of the debts owed within a 3 to 5-year period.
If you are considering filing for bankruptcy and want to discuss your options with an attorney, contact our office and schedule a time for a consultation. (727)954-3720.
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