Bankruptcy
Bankruptcy
Bankruptcy is a legal process designed to help individuals and businesses that are struggling with overwhelming financial commitments. There are several different types of bankruptcy, each with its own advantages and disadvantages. Here is an overview of the different types of bankruptcy and how they work.
Chapter 7 Bankruptcy: Chapter 7 bankruptcy is often referred to as a "liquidation" bankruptcy. It is designed for individuals who have little to no assets and are unable to pay off their financial commitments. In Chapter 7, a trustee is appointed to liquidate non-exempt assets to pay off creditors. However, most individuals who file for Chapter 7 bankruptcy have few assets and are able to keep their property. The process usually takes three to six months, after which your financial obligations are discharged.
Chapter 11 Bankruptcy: Chapter 11 bankruptcy is typically used by businesses that need to reorganize their financial obligations. However, it can also be used by individuals with high levels of obligations who do not qualify for Chapter 7 or Chapter 13 bankruptcy. In Chapter 11, the debtor retains control of their assets and operations while developing a plan to restructure their financial obligations. The plan must be approved by creditors and the court. The process can be lengthy and expensive, but it allows the debtor to continue operating their business.
Chapter 12 Bankruptcy: Chapter 12 bankruptcy is a specialized form of bankruptcy for family farmers and fishermen. It allows them to reorganize their debt and continue operating their business. Under Chapter 12, the debtor has three to five years to pay off their debt.
Chapter 13 Bankruptcy: Chapter 13 bankruptcy is designed for individuals who have a steady income but are struggling with their financial obligations. It is often referred to as a "reorganization" bankruptcy. In Chapter 13, the debtor creates a repayment plan to pay off their financial obligations over a period of three to five years. The debtor keeps their assets and makes payments to a trustee, who distributes the funds to creditors.
Comparison of Bankruptcy Types
The type of bankruptcy that works best for an individual depends on their financial situation. Here are some factors to consider:
Income: If the individual has a steady income and can afford to make payments, Chapter 13 may be a better option than Chapter 7.
Assets: If the individual has significant assets that they want to keep, Chapter 13 may be a better option than Chapter 7. Chapter 13 allows the debtor to keep their assets while paying off their financial obligations.
Business Obligations: If the individual owns a business and needs to reorganize their financial obligations, Chapter 11 may be the best option.
Farming or Fishing Business: If the individual is a family farmer or fisherman, Chapter 12 may be the best option.
Medical Bills: If the individual has significant medical bills, Chapter 7 may be the best option as it can discharge most medical bills.
In conclusion, bankruptcy can be a valuable tool for individuals or businesses struggling with overwhelming bills, offering relief, legal protection, and an opportunity for a fresh start. However, it also carries risks, including credit damage, asset liquidation, public record, and emotional toll. Therefore, it is essential to carefully consider the benefits and risks of bankruptcy before making a decision and consult with a qualified bankruptcy attorney.
Bankruptcy is a legal process designed to help individuals and businesses that are struggling with debt. There are several different types of bankruptcy, each with its own advantages and disadvantages. Here is an overview of the different types of bankruptcy and how they work.
Chapter 7 Bankruptcy: Chapter 7 bankruptcy is often referred to as a "liquidation" bankruptcy. It is designed for individuals who have little to no assets and are unable to pay off their debts. In Chapter 7, a trustee is appointed to liquidate non-exempt assets to pay off creditors. However, most individuals who file for Chapter 7 bankruptcy have few assets and are able to keep their property. The process usually takes three to six months, after which the debts are discharged.
Chapter 11 Bankruptcy: Chapter 11 bankruptcy is typically used by businesses that need to reorganize their debt. However, it can also be used by individuals with high levels of debt who do not qualify for Chapter 7 or Chapter 13 bankruptcy. In Chapter 11, the debtor retains control of their assets and operations while developing a plan to restructure their debt. The plan must be approved by creditors and the court. The process can be lengthy and expensive, but it allows the debtor to continue operating their business.
Chapter 12 Bankruptcy: Chapter 12 bankruptcy is a specialized form of bankruptcy for family farmers and fishermen. It allows them to reorganize their debt and continue operating their business. Under Chapter 12, the debtor has three to five years to pay off their debt.
Chapter 13 Bankruptcy: Chapter 13 bankruptcy is designed for individuals who have a steady income but are struggling with debt. It is often referred to as a "reorganization" bankruptcy. In Chapter 13, the debtor creates a repayment plan to pay off their debt over a period of three to five years. The debtor keeps their assets and makes payments to a trustee, who distributes the funds to creditors.
Comparison of Bankruptcy Types
The type of bankruptcy that works best for an individual depends on their financial situation. Here are some factors to consider:
Income: If the individual has a steady income and can afford to make payments, Chapter 13 may be a better option than Chapter 7.
Assets: If the individual has significant assets that they want to keep, Chapter 13 may be a better option than Chapter 7. Chapter 13 allows the debtor to keep their assets while paying off their debt.
Business Debt: If the individual owns a business and needs to reorganize their debt, Chapter 11 may be the best option.
Farming or Fishing Business: If the individual is a family farmer or fisherman, Chapter 12 may be the best option.
Medical Debt: If the individual has significant medical debt, Chapter 7 may be the best option as it can discharge most medical debt.
In conclusion, bankruptcy can be a valuable tool for individuals or businesses struggling with debt, offering debt relief, legal protection, and an opportunity for a fresh start. However, it also carries risks, including credit damage, asset liquidation, public record, and emotional toll. Therefore, it is essential to carefully consider the benefits and risks of bankruptcy before making a decision and consult with a qualified bankruptcy attorney.
Hours
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Location
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Services are not available in Alaska, California, Hawaii, Idaho, Kansas, Maine, Oregon, Washington.
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Any estimates given by Upside Legal®, or any Upside Legal® Participating Law Firm are based on prior results, which will vary depending on your specific situation, represented claims and your individual law firm’s terms. Not all clients are able to complete their representation for various reasons, including their ability to pay legal fees and save sufficient funds. Upside Legal®, or your Upside Legal® Participating Law Firm does not guarantee that your case will be resolved for a specific amount or percentage or within a specific period of time. Upside Legal®, or your Upside Legal® Participating Law Firm does not assume your debts, make monthly payments to creditors, provide tax, accounting, or credit repair services. Upside Legal® Participating Law Firms are not available in all states, and their fees may vary from state to state. Please contact a tax professional to discuss potential tax consequences of a less than full balance debt resolution. The hiring of an lawyer is an important decision, and it is important to read and understand all documents prior to retaining them. Not paying your creditors will likely adversely affect your creditworthiness, may result in you being subject to collections or being sued by creditors or collectors and may increase the outstanding balances of your represented accounts due to the accrual of fees and interest. However, if a settlement is reached by your lawyer it will resolve the entire account, including all accrued fees and interest. C.P.D. Reg. No. T.S.12-03825.
The hiring of a lawyer is an important decision that should not be based solely on advertisements. Material contained on upsidelegal.com is for general information purposes only and does not constitute legal advice. Upside Legal® provides access to legal services offered by our participating law firms. Neither Upside Legal® nor its officers, employees, or associates directly or indirectly provide legal services, representation, or advice. Please review Disclaimer here
Hours
8:00am-8:00pm CST Mon.-Fri.
Location
5900 Balcones Drive,
Suite 6285,
Austin, TX 78731
Services are not available in Alaska, California, Hawaii, Idaho, Kansas, Maine, Oregon, Washington.
By submitting your contact details and selecting "Yes, contact me now!" above, you agree to our Terms of Use. This includes consenting to resolve any claims under the Telephone Consumer Protection Act through arbitration. You also explicitly consent, via electronic signature, to receive sales, marketing, and other communications via calls, texts, and emails from Upside Legal, LLC, either manually or through automated systems, including those using artificial voice or prerecorded voice messages when a connection is completed, even if your number is on any internal, corporate, state or federal Do-Not-Call list. Consent isn't required for purchase. Message and data rates may apply, and message frequency may vary. You can unsubscribe anytime by replying STOP or clicking the unsubscribe link. For more details, refer to our Privacy Policy and Terms of Use. Text "HELP" for help or contact us at (888) 695-2312. Text "STOP" to cancel. You also understand and agree that you are providing ‘written instructions’ to Upside Legal, LLC and its subsidiaries, affiliates, divisions, and agents (collectively the “Providers”), under the Fair Credit Reporting Act, authorizing the Providers to obtain information from your personal credit profile or other information from one or more consumer reporting agencies, such as TransUnion, Experian, and Equifax. I understand that I am under no obligation to purchase anything.
Any estimates given by Upside Legal®, or any Upside Legal® Participating Law Firm are based on prior results, which will vary depending on your specific situation, represented claims and your individual law firm’s terms. Not all clients are able to complete their representation for various reasons, including their ability to pay legal fees and save sufficient funds. Upside Legal®, or your Upside Legal® Participating Law Firm does not guarantee that your case will be resolved for a specific amount or percentage or within a specific period of time. Upside Legal®, or your Upside Legal® Participating Law Firm does not assume your creditor claims, make monthly payments to creditors, provide tax, accounting, or credit repair services. Upside Legal® Participating Law Firms are not available in all states, and their fees may vary from state to state. Please contact a tax professional to discuss potential tax consequences of a less than full balance claim resolution. The hiring of a lawyer is an important decision, and it is important to read and understand all documents prior to retaining them. Not paying your creditors will likely adversely affect your creditworthiness, may result in you being subject to collections or being sued by creditors or collectors and may increase the outstanding balances of your creditor claims due to the accrual of fees and interest. However, if a resolution is reached by your law firm it will resolve the entire account, including all accrued fees and interest. C.P.D. Reg. No. T.S.12-03825.
The hiring of a lawyer is an important decision that should not be based solely on advertisements. Material contained on upsidelegal.com is for general information purposes only and does not constitute legal advice. Upside Legal® provides access to legal services offered by our participating law firms. Neither Upside Legal® nor its officers, employees, or associates directly or indirectly provide legal services, representation, or advice. Please review Disclosures here
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