Working with clients through the process of bankruptcy
If you believe that your situation calls for the need to file for bankruptcy, it is important to have quality legal support to help you make informed decisions on these significant legal matters. Generally, individuals have two options for bankruptcy; Chapter 7 and Chapter 13. For businesses, there are more options available, namely Chapter 11 bankruptcy. Making the right choice for your financial situation is imperative. Consulting with an experienced bankruptcy attorney can help. Underwood & Micklin has over 20 years of experience helping clients obtain relief under the bankruptcy code. If you need effective legal services, contact our firm for a consultation to discuss your options.
Liquidation (Chapter 7)
Chapter 7 bankruptcy liquidates a debtor’s assets to generate cash in order to pay creditors. Simply put, an agent of the bankruptcy court will take your assets and sell them off to pay as much of your debt as possible. You will be allowed to keep some items under the exemptions allowed by law. Once complete, you will be free of unsecured debts and you can start fresh. It is important to note that Chapter 7 bankruptcy will stay on your credit score for 10 years.
Repayment plan (Chapter 13)
Chapter 13 bankruptcy provides a way to adjust your debts through a repayment plan. You will pay a portion of your monthly income to an agent of the bankruptcy court for distribution to your creditors. This type of bankruptcy can be good for those who are not eligible for Chapter 7 and have the means to overcome debts. Under this code, you may be able to extend the life of a loan or even pay less. Often, these plans are for 3 or 5 years, allowing you to make smaller payments, keep more of your monthly income for basic needs, and mitigate overwhelming debt. To qualify, you must have a regular income and your debts must not exceed a certain amount. Chapter 13 bankruptcy will stay on your credit for 7 years.
Chapter 11 Bankruptcy (Debt restructuring plan for businesses)
Chapter 11 is a debt restructuring plan for businesses. While some businesses will have to liquidate assets (Chapter 7), closing shop and firing staff, some businesses would flourish with a little help. Chapter 11 Bankruptcy allows a business to continue operations, receive income and employ the staff. While under the protection of the Bankruptcy Court, a business will restructure its debts, paying back creditors over time. The goal is to make the business profitable again.
Contact a Cherry Hill Bankruptcy Law Firm
If bankruptcy is something you need to consider, it is important to not go it alone. Though it seems overwhelming, bankruptcy could be a good way to start fresh and get back on track. Underwood & Micklin has over 20 years of experience as a debt relief law firm. We help clients navigate towards a new future. If you need quality legal support from a compassionate and dedicated law firm, contact Underwood & Micklin today.
