Running into financial trouble rarely feels anything but unpleasant. All the same, there are almost always solutions to even the most imposing-seeming of financial problems. Consulting with a Bankruptcy Attorney in Wetumpka AL like one of those at Courtney & Mann LLP will often reveal effective, fitting ways of getting a clean start.
Three Types of Bankruptcy for Individuals to Consider
The federal government makes and enforces the laws governing bankruptcy protection all throughout the United States. While there are other options for corporations, individuals who might benefit from bankruptcy have three distinct choices before them. A Bankruptcy Attorney in Wetumpka AL will always be able to point out which of these will be most suitable, with the options in question being:
• Chapter 7: The type of protection afforded under Chapter 7 of the federal bankruptcy code revolves around a process known as “liquidation.” Under this type of bankruptcy, most of a debtor’s asserts will become subject to sale by the trustee assigned by the court to oversee the process. Any proceeds from this liquidation of assets will then be distributed to creditors with valid claims, as determined by the court. In exchange for giving up personal assets, a debtor will normally have all debts liquidated, as well. Chapter 7 can enable a fresh beginning even for someone whose debts have become entirely impossible to service.
• Chapter 13: While Chapter 7 is a popular choice, it can be an overly drastic one for some debtors. Bankruptcy petitioners who still have regular income will often opt for reorganization under Chapter 13, instead. This type of bankruptcy empowers the court to work out and enforce repayment agreements that can cut the amounts owed to creditors significantly. As an associated benefit, a debtor will normally be permitted to retain possession of many assets that would be liquidated under Chapter 7 proceedings.
• Chapter 11: A final option, and one that is similar to Chapter 13 but more complex and flexible, is described under Chapter 11. In practice, this option is usually most appropriate for corporations or individuals with especially complicated financial situations.
Attorneys Can Always Help
Choosing the most suitable type of bankruptcy protection to seek will always be an important step. Working with an attorney consistently proves to be the best way to get started and to make further progress. Visit the website for more information.