Many people face financial problems at some time in their lives. When financial trouble is beyond control of the person experiencing it, bankruptcy might be a solution. Bankruptcy can help a debtor get out of financial trouble in a constructive and orderly manner.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy law in New Market helps people get out of debt by giving them more feasible options. Assets do not have to be liquidated, and negotiations are made with creditors to change the terms of loans. Chapter 11 bankruptcy is best suited for the debt of a person’s business. The terms of most cases are that the owner of the business in debt pays the debt over time while reorganizing and growing their business.
Chapter 11 bankruptcy law in New Market allows a business owner to stay in business with the chance to make a comeback. Debt gets paid off as the business and its profits grow. Those who wish to save their business and gradually pay off debt should set up a consultation with a bankruptcy lawyer today.
Chapter 13 Bankruptcy
This type of bankruptcy is also called “wage earner’s plan”. It gives wage earners the opportunity to pay all or part of their debt under revised conditions. In this chapter of bankruptcy, individuals make monthly installments over the course of three to five years. Creditors are not allowed to continue their collection efforts after chapter 13 bankruptcy is in effect. Interest charges are usually eliminated, and any remaining debt after the term has ended is forgiven.
Chapter 7 Bankruptcy
This type of bankruptcy is a liquidation option for an individual or business, depending on the circumstances. A business owner may want to do chapter 7 with plans to close the business. The assets of the business are liquidated to pay off all the debts. Individuals may want to file for chapter 7 when they have assets they are okay with liquidating. Once assets are liquidated, the former debtor can start over.
The best way to file for bankruptcy is with the assistance of a lawyer. Lawyers make sure paperwork is filled out correctly and help to select the best-customized debt relief plan for every one of their clients.