Exploring Solutions to Your Debt Problems.
The bankruptcy attorneys at Discreet BK address all types of scenarios, from individuals who have fallen behind on credit card bills, businesses that are struggling to pay back loans and individuals who have guaranteed the debts of their businesses or who are struggling with tax debt. The type of bankruptcy that you file will depend on the details of your situation.
Types of Bankruptcy
Chapter 7 bankruptcy
Chapter 7 is for individuals and businesses who seek to discharge debts and start anew; this option involves the Chapter 7 trustee’s liquidation of your non-exempt assets and distribution of proceeds to your creditors. Often all property you own is exempt, meaning that you will not lose any of your property. Note that under this option, you may still be able to retain your house and other forms of exempt property. Eligibility for Chapter 7 depends on several factors, including income.
Chapter 13 bankruptcy
Chapter 13 bankruptcy permits individuals or sole proprietorship businesses (but not corporations or LLCs) to formulate plans to repay certain debts over a three to five-year period. This option is typically used by people who do not qualify for Chapter 7. But, among other reasons, it is also useful for people who have fallen behind on mortgage payments or who have certain tax debt.
Chapter 11 bankruptcy
Chapter 11 bankruptcy is more complex, and is mainly used by businesses, but is also available for individuals with high income and debt levels. A major advantage of Chapter 11 is that you will be able to continue running your business as you create a plan to pay back creditors and restructure your financial affairs.