What Bankruptcy Type is Right for Me?
Financial problems are not easy to resolve. If you have gotten behind on credit card payments, getting back on track can be a challenge. This is especially true if you have suffered from job loss or are dealing with a huge expense, such as medical bills or car repairs.
Struggling to make money on a daily basis can be exhausting, especially if you do not have a regular job. Many people choose gig work and other part-time work to make extra cash, but it is not always enough.
If you are tired of digging deeper and deeper into debt, it may be time to consider bankruptcy. Bankruptcy can help you reorganize your debt or even eliminate it completely. If you are looking for a way to get your finances back on track, bankruptcy can help.
There are several main types of bankruptcy: Chapter 7, Chapter 11, and Chapter 13. Find out which one is best for you.
Chapter 7 Bankruptcy
Chapter 7 is a liquidation bankruptcy. If you do not have many assets, or the assets you do have are exempt from liquidation (in Florida, exemptions include your home and your retirement plans, among other things). Chapter 7 allows you to discharge unsecured debt such as credit cards, personal loans, and medical bills. Student loans and child support payments cannot be discharged. The biggest barrier to qualifying for a Chapter 7 bankruptcy is the income limit. You must be able to pass a means test. These bankruptcies are quick and are completed in three or four months.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is primarily for businesses. It allows a company to stay in business by reorganizing its business affairs, assets, and debts. Corporations, partnerships, and limited liability companies (LLCs) usually file Chapter 11}. In rare cases, individuals may do so as well. The debtor can create a plan, or the creditors may propose one instead. The plan may include downsizing business operations, renegotiating debts, or even liquidating assets to repay creditors.
Chapter 13 Bankruptcy
Chapter 13 is a consumer bankruptcy, but unlike Chapter 7, assets do not get liquidated. Instead, you get to keep your property but need to pay creditors the value of those assets over time. You can even stop foreclosure. Chapter 13 bankruptcy is for those who earn too much for Chapter 7 and have regular, steady income. You repay creditors an amount you are deemed to afford through a plan that lasts three to five years. Your proposed must be approved by the court.
Contact Our West Palm Beach Bankruptcy Lawyer Today
There are several main types of bankruptcy. If you are struggling to pay bills, figure out which option is best for your needs.
Financial decisions can be hard to face on your own. Get advice from West Palm Beach bankruptcy attorney Brian K. McMahon, P.A. We can ensure you complete all of the required paperwork and avoid making mistakes during the filing process. Fill out the online form or call (561) 658-1789 to schedule a consultation. We serve the West Palm Beach, Boca Raton, Port St. Lucie, and South Florida areas.