No one expects to find themselves in debt beyond what they can afford to handle. Unexpected things like getting laid off or the closing of a business happen almost every day. This leaves families in financial trouble. When you think there is nowhere to turn, Bankruptcy attorneys in Woodbury MN can help you file bankruptcy. Bankruptcy allows you to start over again. Here are a few types of bankruptcy.
Chapter 7
Chapter 7 is one of the most popular bankruptcy types used by individuals. When an individual can no longer pay their debts and suffer with credit problems, a Chapter 7 provides a way to start over. This kind of bankruptcy is also known as a liquidation bankruptcy. Some property like your furniture, home, vehicle(s), and clothing are considered exempt from Chapter 7 liquidation. You can have unsecured debt like unsecured loans, credit cards, and other unsecured debt discharged while keeping your home and property through Chapter 7 bankruptcy.
Chapter 11
Chapter 11 bankruptcy is used by individuals and businesses in financial trouble. This type of bankruptcy is more often used by businesses to avoid liquidation and closing their doors. It provides a way to relieve the business owner of debt while allowing them to remain in business. It is designed to protect your business assets while you pay back your debt over time. Most businesses work with vendors on a cash only basis during this time.
Chapter 13
Chapter 13 is ideal for individuals with a stable income and the ability to dedicate themselves to a long-term financial repayment plan. You do have to meet the requirements for Chapter 13 in unsecured and secured debt amounts as well as have a sufficient income to commit to a three to five year pay off plan. There is no liquidation with Chapter 13. You keep everything you own and become debt free in three to five years.
You can find out more about which type of bankruptcy will work best for you by consulting with an attorney. If you want a way to get out of debt, liquidate your debt, prevent foreclosure and repossession, and/or stop harassing collection calls, the Lamey Law Firm P.A. can help you. If your financial problems are a source of stress, bankruptcy could be a good choice for you.
