Chapter 7 bankruptcy is the type of bankruptcy that most debtors qualify for most easily, but it is not always the only option that a debtor has. Depending on several factors such as the nature of the debt and the income of the debtor, he or she may qualify for Chapter 11 or Chapter 13 bankruptcies, for instance.
If a debtor carries debt as part of a business, then he or she may have grounds to file under Chapter 11. This bankruptcy focuses on offering certain types of businesses streamlined debt relief procedures and creating important protections and benefits for small businesses. In many cases, the entity seeking bankruptcy can propose a repayment plan to its creditors that helps the business restructure its debt or pay it down over a beneficial time period.
Individuals may also qualify for a repayment plan bankruptcy under Chapter 13. Under this bankruptcy, individuals with significant income may pay down their debts and possibly discharge some without sacrificing most of their personal assets. In all of these instances, the debtor receives swift relief from collections and is usually able to keep many existing assets.
If you suspect you may qualify for a bankruptcy other than Chapter 7, or if you are not sure, you can consult with an experienced bankruptcy attorney to examine your debt and assess your options. Professional guidance ensures that you fully understand the scope of the benefits, protections and restrictions that each available bankruptcy offers. It helps you keep your rights and priorities secure as you make your way towards your financial goals. For additional information or a free consultation, contact the Quinn Law Firm at 814-833-2222.
Source: US Courts, “Chapter 7 – Bankruptcy Basics,” accessed Dec. 29, 2017