Choosing the type of bankruptcy – Who’s choosing and why is it important for an average person to know this?

Filing for bankruptcy can be equated to another chance. It’s different for everyone and it’s important to act quickly. 

Before filing you must consult a legal expert to discuss what you owe and what’s best. 

Chapter 7 is regarded as straight bankruptcy and results in immediate relief. It enables one to settle debts by liquidating your assets. It is generally quick because it can be completed within a year. This option is ideal if your wages are being garnished and if you’re being harassed by creditors, with no other way to settle. 

A Chapter 13 filing, takes 36 – 60 months and has to be set up and approved by the Court. This way you may get to retain some of your assets. Your creditors may approve or disapprove, while a trustee is appointed to ensure that all payments due to creditors are made.  

A Chapter 11 filing could work well for business owners. This way, you can keep running your business. 

Ultimately, it can help you erase what you owe and to achieve peace of mind. Choosing the type of solution that is most suitable is a key part of finding the best ways to repay either by using the assets you have or by restructuring what you do owe. Keep informed and try to find alternative solutions prior to going down this path. Once you do, remember that it doesn’t go away for at least 10 years. By changing the ways in which you spend and ensuring that you keep up to date with payments in addition to always communicating with your creditors, you can recover.