Are both the stress of unpaid debts and harassing phone calls beginning to run you down? Does filing for bankruptcy with a Harrisburg bankruptcy attorney seem like a viable solution for you? Before taking action, it helps to have a better understanding of the differences between Chapter 7, 11 & 13 bankruptcies. Let’s explore each further to discover what may apply to your specific situation:
Chapter 7:
A majority of filings are Chapter 7. When debts become unmanageable and there seems to be very little hope left, Chapter 7 bankruptcy can provide the relief from these unsecured debts that you need. Once a trustee is designated, any assets that are non-exempt will be sold in order to pay off a portion of the debts to creditors. In order to protect a portion of your property from being liquidated, it is best to discuss your financials with a qualified Harrisburg bankruptcy attorney. Some of these exemptions may even include your car or mortgage!
Chapter 11:
For many businesses, Chapter 11 is typically the most popular option. In this scenario, a debtor would maintain the business under close supervision by the court, so that debts can eventually be paid. A committee of up to 20 of the top unsecured creditors would be elected to represent all others and to help oversee the debtor’s efforts in restructuring and implementing an effective business plan. This would be introduced via popular vote, or in some instances, a debtor could override the creditors’ denial of their plan if certain guidelines are met. Unfortunately, there is a very low success rate for Chapter 11.
Chapter 13:
On the other hand, Chapter 13 bankruptcy is available to those individuals who currently have steady active work, but need to buy some time in order to pay off debts. The benefit of filing for Chapter 13 with a Harrisburg bankruptcy attorney is that creditors will be unable to continually tag on additional fees and penalties, and interest rates will typically be lowered as well. The Bankruptcy Court will work with the debtor and creditors to create a plan that will ensure that all debts are eventually paid within realistic measures. This form of bankruptcy will also help to better protect current assets that an individual owns since the end goal is to have everything paid off.
In conclusion, there are many unique factors that play into a bankruptcy, and therefore it is in your best interest to review your financial information with a knowledgeable Harrisburg bankruptcy attorney. They will be able to help you assess what route is best for you, in order to protect your family, future and assets. Schedule an appointment today and achieve peace of mind!
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