Going bankrupt means that you can’t pay your debts and that a court has approved your petition for formal relief. Since each petitioner’s situation is different, the U.S. Bankruptcy Code includes provisions for distinct kinds of protection and relief.
A business that wants to repay its debts over time might file a Chapter 11 bankruptcy petition with a custom reorganization plan. If the court approves it, then the company may be able to keep its assets and stay in operation by using its income to pay off outstanding debts. Chapter 13 bankruptcy petitions provide similar reorganization options for individuals, and Chapter 7, or liquidation, entails selling your non-exempt assets to repay debts.
Each kind of bankruptcy is appropriate for specific situations.
Which bankruptcy chapter might suit your situation best? There’s no universal rule, so it’s important to evaluate each case individually. From filing your bankruptcy petition to negotiating with creditors about your proposed reorganization plan, you should have legal guidance at every stage.
Getting the Process Started
Who benefits from seeking bankruptcy protection? This legal status can improve the lives of those who face actions like foreclosure and people who want to stop their unpaid debt from permanently compromising their credit standing. It’s also a big help to small businesses that experience hiccups along the way, such as being ordered to pay lawsuit judgments or settlements.
Bankruptcy isn’t just for people who lack the financial expertise to manage their debts. Whether you experienced hard times due to medical emergencies, bad investments or failed business ventures, it’s smart to keep your options open.
Filing for bankruptcy can be a complicated process, especially if you’re struggling to recover your good financial standing.
Ready to make bankruptcy more straightforward? Talk to a team member at Turnbull Law Group SC, LLC. Our personalized case evaluations are always free, and we have the experience to help you choose the best solutions for your situation.