Most of the people are having a hard time whether to declare bankruptcy or not. One of the reasons that they consider is it will put them or their business in a bad light. However, will you still be able to think of that reason if it’s your only option?
If you need a legal action, these are the two common types of bankruptcy codes that will totally help you.
Chapter 7
This is the most popular type of bankruptcy. The experts usually sell the property of the debtor to pay her credits. However, since they cannot sell that property that is exempt the law, most of the debtors can still keep the majority of their properties so no need to worry about losing your favorite car, if you have one.
When it comes to the time frame, this code usually takes three up to four months only. The only people who are eligible for this system are those business owners who have low incomes or those who pass the mean assessment. However, those business-owners who have high incomes are not eligible for this code.
You can file for a Chapter 7 bankruptcy code even if you don’t have a lawyer. However, if you want a satisfactory result, make sure that you own a little property or no property at all, your income is not higher than the median state and you have not made money or property payments to your preferred creditors. Also keep in mind that even if you didn’t get a lawyer, you are still obliged to pay the $335 Chapter 7 bankruptcy filing fee plus the $50 personal finance management class. The final decision whether to get a lawyer or not will always be yours.
Chapter 13
If you want to pay your creditors through a repayment plan the Chapter 13 Bankruptcy code is the best one for you. The repayment plan is the agreement between you and your creditor that pinpoint how the debts will be paid back. The timeframe for this usually takes three to five years, depending on your income.
Filing this type of bankruptcy can also be done without a lawyer. However, would you take the time to research all law and represent yourself to the court? Getting an attorney will be easier for you and for your case to be approved.
Unlike the Chapter 7 code, another good thing about filing chapter 13 code is you can still keep all your property so no need to worry about selling your boat, farm house or expensive electronics if you have one.
Takeaway
Declaring a bankruptcy doesn’t mean that you have lost the battle in the corporate world. There are some times that things don’t go with how you wanted them to be, but it doesn’t mean that you, or your business, is unavailing. If you feel like you already need help to save your business or yourself still, then filing for the proper bankruptcy code is always an option.
