Are you overwhelmed by debt? If so, you may want to consider filing for bankruptcy relief. Contrary to popular belief, filing for bankruptcy doesn’t take all of your assets away. In fact, there are many assets that may be exempt. Don’t let the fear of bankruptcy keep you from getting relief from your debts.
If you’re wondering what type of bankruptcy you should file for, here are some things you should know.
When you file Chapter 7 bankruptcy, you don’t need to have a repayment plan, however, you will need to liquidate or sell some of your assets in order to pay back the creditors.
Here are the requirements for Chapter 7:
- Your income is below the median for the state that you’re filing in, or
- Pass a “means test”
If you’re concerned about liquidating certain assets during this process, you may be able to keep some exempt assets, such as your car and your home.
An Atlanta Georgia bankruptcy lawyer can help you determine if this is the right type of bankruptcy for your situation.
Chapter 11 bankruptcy is designed to help businesses reorganize. Through this process, the business will be restructured and will need to follow a plan to pay back the creditors. In order for this bankruptcy to occur, a court-appointed Trustee must give approval. This process can be extremely complicated, which is why an experienced bankruptcy lawyer can help represent your business.
Unlike Chapter 7 bankruptcy, chapter 13 bankruptcy does include a repayment plan, typically over a three- or five-year period. If you fail the means test for Chapter 7, Chapter 13 may be an option for you. Similar to Chapter 11, a Trustee must approve your repayment plan as well as may back the creditors.
If you’re wondering which type of bankruptcy is right for you, contact the Hanchett Law Firm today.