Sometimes people need to find a law firm to assist them with financial matters, such as filing for bankruptcy. It can be difficult to find the right lawyers who can guide you through the legal processes and present all the available options and outcomes. This article will provide information on law firms and the most well-known types of bankruptcy, which will help you determine the best approach for your specific legal case.
Law firms that can help you with bankruptcy
There are numerous law firms located in Illinois, Georgia, and Texas, all with the same intention of assisting you. To locate a firm that specializes in bankruptcy, you can begin by conducting an online search or reaching out to your local bar association. Additionally, it is advisable to seek recommendations and review local resources such as legal aid organizations or community centers. It is important to assess your specific needs and consult with several lawyers and firms before making a final decision.
Types of Bankruptcy
If you feel overwhelmed by bankruptcy types and wonder which one to file for, here are the differences you need to know about.
Chapter 7 bankruptcy
Chapter 7 bankruptcy, also known as “liquidation” bankruptcy, is the most common type of bankruptcy. It involves the process of asset liquidation. To qualify for Chapter 7, individuals must undergo credit counseling and complete several forms, including a petition to the court. Upon successful completion of the Chapter 7 process, eligible debts are discharged, relieving the debtor of the legal obligation to repay them.
Chapter 13 bankruptcy
In bankruptcy law, Chapter 13 is known as “wage earners” bankruptcy. It allows individuals to establish a repayment plan to pay off their debts over a period of three to five years. To be eligible for this type of bankruptcy, you must have a stable income, be up to date on your tax filings, and have not filed for Chapter 13 bankruptcy in the last two years. By opting for Chapter 13 bankruptcy, you can erase unsecured debts, such as credit card payments.
Chapter 11 bankruptcy
Chapter 11 bankruptcy is mostly intended for businesses, unlike Chapters 7 and 13. Nonetheless, individuals with significant debts can also make use of it. Chapter 11 bankruptcy allows businesses to reorganize their debts, renegotiate contracts, and develop a new strategy for achieving financial stability. This enables businesses to continue operating and earning revenue while paying off creditors as per a court-approved plan. It is important to note that Chapter 11 bankruptcy is renowned for being complex and expensive.
Chapter 15 bankruptcy
Chapter 15 bankruptcy deals with cross-border insolvency cases and is specifically designed to handle situations where a debtor or its assets are subject to insolvency proceedings in multiple countries. One of the principal goals of Chapter 15 is to establish a mechanism for recognizing and enforcing foreign insolvency procedures in the United States, while also promoting cooperation and communication among the courts and parties involved.
Chapter 9 bankruptcy
Chapter 9 bankruptcy is a specialized form of bankruptcy that is applicable to municipalities such as cities, towns, and counties. This type of bankruptcy enables them to reorganize their debts and establish a strategy to regain financial stability. Although there are similarities with other bankruptcy chapters, Chapter 9 has distinct provisions that are customized to meet the requirements and limitations of municipalities. It presents an opening for municipalities to engage in discussions with creditors and devise a practical plan to repay their debts and recover financially.
