Is Bankruptcy The Right Option For You?
Debt problems don’t just hurt your credit score. These issues pose a risk to your future and financial security. Moreover, the stress of being in debt can be detrimental to your physical and emotional health. If you or your small business is suffering under the weight of overwhelming debt, it may be time to consider filing for personal or business bankruptcy.
Parchment Law, P.A., is here to help, every step of the way. We can advise you on whether you qualify for a Chapter 7 or Chapter 13 bankruptcy, when to file and whether your assets will be safe if you file. We ensure that your bankruptcy filing goes smoothly.
Chapter 7 Personal Bankruptcy: The Basics
Chapter 7 of the Bankruptcy Code is often referred to as liquidation bankruptcy. If you qualify for this option, most of your unsecured debts can be discharged (forgiven), including credit card bills, medical bills and similar debts for which there is no collateral. The process can be completed within a few months.
The downside is that some of your assets may need to be liquidated in order to partially repay creditors. There are exemptions and exceptions, but you’ll need to speak with a bankruptcy attorney to better understand how they would apply in your specific case.
Chapter 13 Personal Bankruptcy: Reorganization
This is a different approach to bankruptcy focused on restructuring and repaying debt over time. You will work with a bankruptcy trustee to negotiate with creditors and create an affordable repayment plan lasting three to five years. You make just one monthly payment, sent to the trustee, who then distributes the funds to creditors according to the plan.
Chapter 13 takes longer but has a shorter impact on your credit score. Moreover, it is the only option available to you if you don’t qualify for Chapter 7 bankruptcy.
Bankruptcy Considerations For Business Owners
Chapters 7 and 13 are the two basic options for personal bankruptcy, but they can also apply to businesses in some scenarios, depending on the business structure. Most businesses cannot file Chapter 13, but Chapter 11 (which is designed for businesses) is comparable.
Depending on if your goal is to close the business or stay open, we can guide you through asset protection for your business. Protecting you is what we do best.
Want To Learn More About Your Options? Give Us A Call.
Based in Hollywood, Florida, Parchment Law, P.A., serves clients throughout the surrounding areas. To arrange your initial consultation with our skilled bankruptcy attorney, call us at (305) 722-3446. You can also send us an email.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.