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Types of Bankruptcy
Protection
The two most common types of
Bankruptcy for individuals
are Chapter 7 and Chapter 13.
Chapter 11 Bankruptcy
is customarily utilized by business entities to
reorganize their business affairs , however, an
individual may also utilize
Chapter 11 bankruptcy if the circumstances
are appropriate. These Bankruptcy Chapters are
different in a number of ways and are more
beneficial to different types of debtors, as
they have particular advantages. By talking to a
competent Bankruptcy
Attorney about your particular financial
situation or that of your corporation, you have
the opportunity to find out more about which
type of bankruptcy you may qualify for, as well
as which type will be more beneficial to your
unique circumstances.
Thomas L. Abrams
P.A. offers a free initial consultation to help
you get started in making a proper determination
and most importantly whether Thomas L. Abrams
P.A. is the firm you want to hire for your case.
We represent clients in all aspects of
Chapter 7, 11 and 13
bankruptcy cases throughout South Florida.
Which Type
of Bankruptcy is Right for You?
While the best way to determine whether you
qualify under Chapter 7, 11 or 13 and decide
which option is better for you is to talk to a
Bankruptcy Lawyer, here is some basic
information about these types of bankruptcy:
A Chapter 7 bankruptcy
may be referred to as “liquidation” and entails
a debtor surrendering nonexempt assets to the
bankruptcy trustee in order to be sold and the
proceeds used to pay creditors. Chapter 7
bankruptcy does not entail payment under a plan,
rather, a debtor may keep all non exempt assets
upon a successful Chapter 7 bankruptcy case. The
determination of which assets are exempt and a
full analysis of your financial circumstances is
necessary in order to determine whether Chapter
7 bankruptcy is proper for you.
Chapter 11 bankruptcy
is most often beneficial for business entities
seeking to reorganize their business affairs,
obtain a breathing spell from certain business
or debt pressures while a business plan/strategy
is developed or to stop a foreclosure,
garnishment or other legal action which could
severely harm the business. Chapter 11 may also
be utilized by individuals, however, because of
the complexities involved in a
Chapter 11 bankruptcy
as well as the expense it is only appropriate
for individuals in certain limited cases.
Chapter 13 is often
an option for individuals with higher incomes
and who have real property and other assets they
need to protect. An individual who has a regular
income and can pay basic living expenses but is
facing overwhelming debt or foreclosure may
qualify for a Chapter 13
bankruptcy.
A
Chapter 13 bankruptcy case may be referred
to as a “reorganization” or “wage earners plan.”
In these cases, the debtor works out a payment
plan to pay a portion of eligible debts over a
period of three to five years. The amount paid
is based on the available disposable income and
value of non exempt assets. The outcome is a
discharge of all eligible debt at the successful
conclusion of the case.
If you would like
to know more about the types of bankruptcy and
their specific benefits, contact
Tom Abrams for an
initial consultation without charge.
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