You already know that financial security is important for both individuals and businesses. Many individuals and businesses go through a time of financial crisis and for a variety of reasons. To alleviate much of the burden associated with overarching debt the option of bankruptcy often comes up. Bankruptcy permits you to discharge (no longer owe) or repay existing debts and rebuild financial security. Crucial to the process is a highly skilled bankruptcy attorney to guide you through the bankruptcy process. At Primuth & Driskell, LLP, we can guide you through the filing of Chapter 7, Chapter 11 and Chapter 13 bankruptcy.
Chapter 7 bankruptcy is available to assist both individuals and businesses with the dissolution of debt. Chapter 7 involves the dissolution and liquidation of all assets in order to dissolve existing debts, but this doesn’t mean that you will be forced to part with your belongings. In most cases, Chapter 7 bankruptcy usually takes about four months to complete. During this time, a Chapter 7 bankruptcy proceeding can help prevent further attempts to collect debts from wage garnishments, bank levys and collection agency attempts.
Businesses or individuals that wish to reallocate their finances to allow for repayment of existing debts can consider Chapter 11 bankruptcy. Chapter 11 allows for developing payment plans which allow for repayment of debt while maintaining the possession of property. This process differs from Chapter 7 bankruptcy in that liquidation of business assets in order to pay off debts is not required. Likewise, under Chapter 11 bankruptcy, businesses are able to continue operating in their full capacity. Chapter 11 can also be used for individuals facing a high debt burden that do not qualify for Chapter 13.
Individuals considering bankruptcy can use Chapter 13 to create a payment plan in order to dissolve their existing debts. Chapter 13 is equivalent to Chapter 11 bankruptcy, except it is designed only for individuals. Under Chapter 13 bankruptcy, individuals set up a payment plan with the assistance of their lawyer to repay specific debts within 3 to 5 years. Using Chapter 13 bankruptcy, individuals avoid liquidating their personal assets by agreeing upon payment terms for existing debts.
The decision to file for bankruptcy is a complicated and important process. Primuth & Driskell, LLP has significant experience in helping individuals and businesses file for bankruptcy. If you have questions regarding how bankruptcy applies to your situation contact Primuth & Driskell, LLP for an analysis.