It’s possible you’re familiar with bankruptcy, did you know there are different types? The reasons, benefits and ramifications of each type is different. It is important to understand all your options. When you hear the word bankruptcy what comes to mind? Do you imagine someone losing their home or everything they own? Have you read of stories of people having their credit destroyed? COVID-19 is wreaking financial havoc one people who never saw it coming. Enter The Wright Law Alliance, here to help you through bankruptcy.
The idea of bankruptcy can stress people out because most times people want to avoid it. As a bankruptcy attorney, we know all about these fears, concerns and struggles.
What is bankruptcy?
Bankruptcy provides a solution for people with a large amount of debt. This service is for people who are looking for financial reorganization and relief. Bankruptcy will fall under one the following two categories: liquidation or reorganization.
Illness, divorce, a pandemic, foreclosure or a job loss can push you to consider bankruptcy. Others might even experience several of these at once. Because of this, debt can pile up fast. And without a safety net, you might find yourself struggling to get back on your feet.
Chapter 7 is the type of bankruptcy most often associated with a fresh start. Debtors will many if not all debts wiped clean. These include credit card balances, medical bills and personal loans. Often times in exchange, the debtor agrees that the bankruptcy trustee can sell certain assets to pay creditors. The proceeds go to creditors according to a priority ranking system.
Chapter 13 is also known as “wage earner” bankruptcy. To file for this type of bankruptcy, you must have a reliable source of income to repay a part of your debts. You will propose a repayment plan detailing how you plan to pay back your debt over a certain amount of time. . The least amount that you will repay will be be influenced on how much you earn. Other factors are how much you owe and the value of your nonexempt property.
Are You In Georgia? We Want To Be Your Bankruptcy Attorney
It has been our experience that many of our clients describe the “after bankruptcy” feeling as a fresh start. They have a clean financial plate without the looming burden of unpaid bills and creditors bothering them. And it is important to keep in mind, this is an introduction to bankruptcy. Deciding what is the best option for you will take a free consultation to determine.
If you are still unsure of what the best option is for you, let’s talk. We are happy to discuss the legal process of each type of bankruptcy with you and help you through the process. Bankruptcy can be intimidating, but if it is the right fit for you, we want to make it easier.