Bankruptcy can be a difficult thing to understand the full scope of. It’s also a difficult circumstance to be a part of as it means that debts are hurting a company from operating well or that an individual has debts holding them back from carrying out a healthy financial life. There are a few different types of bankruptcy in existence and different types of entities can also file these types. If you would like to learn about the different types of bankruptcies and who can file for which one then keep reading.
Different Types of Bankruptcies
There are a few different types of bankruptcy that individuals can file for. These are chapter 7 and chapter 13 bankruptcy. Chapter 7 is filed by individuals who then will have to liquidate assets to settle debts with creditors. Things like houses or a vehicle that is gravely needed may be exempt from liquidation depending on the circumstances. Chapter 13 bankruptcy is filed by individuals too and puts them on a repayment plan without the need to liquidate assets. Monthly payments will be made over a 3-5 year period that will depend on the person’s income and other financial information.
Other Bankruptcy Types
There are a few other types of bankruptcy too. Chapter 11 is filed by corporations and organizations. They will be able to continue operating the business or organization while repaying debts over a certain period of time. Chapter 9 is for municipalities and school districts. They can remain running while in bankruptcy but will be put on a repayment plan to repay their creditors. Chapter 9 is reserved for family-owned businesses like farms or fisheries. They can hold on to their assets and things needed for the business while being put on a repayment plan and still remaining in operation. If your family-owned business or corporation is struggling financially and is wondering about the next steps to take then filing for bankruptcy may be the correct option. Seek out a professional who has experience with bankruptcy and filing for bankruptcy if further guidance or support is needed.
Help From a Bankruptcy Law Firm
For assistance with these types of financial things, it’s important to have a professional that can offer their assistance and undivided support. Filing for bankruptcy can be a daunting and difficult process that is too much for someone to handle on one’s own in most cases. There are a lot of documents needed and deadlines and other stipulations that need to be adhered to. If you are in need of assistance then consider reaching out to a bankruptcy lawyer turns to from a firm like Eric Lindh Foster Law, LLC. A firm like this one has the necessary experience and skills to help with bankruptcy filings and to be there for support throughout the entire bankruptcy process. Turning to professionals when going through difficult financial times can offer a greater chance of overcoming these issues in many financial cases.