Which bankruptcy is right for me?

Consulting with an experienced attorney can help you chose the best bankruptcy to file.

A common question that I am asked is which bankruptcy is better to file?  As I am sure you understand this is loaded question.  Each type of bankruptcy addresses a different type of financial need. The first step in filing bankruptcy with our office is a consultation with the attorney. During this consultation the attorney will review your financial information and discuss which bankruptcy is better to file.  Since bankruptcy is a mine field the more information you provide your lawyer the better help you will receive.

Here is a quick summary of each kind of bankruptcy:
Chapter 7 is generally called a liquidating bankruptcy and its purpose is to take away debt and to allow the individual to start over. Businesses can file for a Chapter 7 bankruptcy but they cannot continue in operation.
-Chapter 9 bankruptcy is intended for cities and municipalities.
-Chapter 11 is intended to permit an individual or business time to reorganize themselves financially and repay their debts over a period of time, or to allow the orderly liquidation of assets at a higher value than could be obtained at execution or sheriff sale. It’s purpose is to give creditors more money than they would have received if they were allowed to collect as they normally do.
-Chapter 12 is for family farmers and fishermen. It is a cross between chapter 11 and chapter 13.
Chapter 13 is most often called a wage earner plan or repayment bankruptcy. Chapter 13 is similar to a debt consolidation loan with the payments being made to a bankruptcy trustee who then distributes them according to a set pattern to creditors.

Depending on your financial situation an experienced attorney will help you determine which bankruptcy is better to file for and which will most benefit you.  And finally one word of advice – don’t wait too long to contact an attorney – some of your right might be lost if you wait too long so call them today and set up a consultation.

Leave a Comment