After you’ve made the decision to file for bankruptcy, your next step is to retain a bankruptcy lawyer in Pompano Beach. A bankruptcy lawyer can aid you understanding the sometimes complicated bankruptcy laws, and ensure that you file the appropriate Chapter for your particular situation. There are five filling options debtors can chose from in bankruptcy cases, however, the most commonly filled are Chapter 7, Chapter 11 and Chapter 13.
Chapter 7
Chapter 7 is considered one of the simplest bankruptcy options to chose from. It is commonly used by individuals who lack the means to pay off any debts they have created. With this option, the debtor must agree to attend a credit counseling course and have the courts review their financial situation to determine if they are in fact unable to pay their creditors. Individuals are typically required to sell anything of value they own – liquidate their assets. The proceeds from these sales are paid to creditors in order to eliminate the debt. Even if the proceeds do not completely cover the cost of the debt, the debt is considered pain in full. It’s important to note that some debts are protected from liquidation and some debts can’t be erased with this process. Bankruptcy Attorneys in Pompano Beach can aid you in understanding the laws as they pertain to your particular situation.
Chapter 11
Chapter 11 filing is commonly referred to as reorganization and it is the most common filing type for businesses. This option requires that the business owner organize all their finances and come up with a realistic plan for paying off any debts. An attorney complies this information and talks with creditors about negotiations. In many instances, the business is able to get the amount of the original debt reduced. However, the business owner will typically be required to sell their business. The court does make distinctions between small and large business when drafting the terms for which the debt must be repaid.
Chapter 13
Chapter 13 filing is most often used for individuals who are in tremendous debt, but still have a job or another source of income to aid in repayment. However, the court does establish limits on the amount of debt an individual can carry when choosing this option. All debts, income and assets are disclosed and reviewed by the court. Then, a repayment plan is structured using a court appointed trustee as the overseer.
