Financial stresses affect almost everyone. There are times when unfortunate events cause you to get in over your head, where your debt load is higher than your level of income. Sometimes bankruptcy is the best option for those who are drowning in debt and desperate for a fresh start. There are a few different options when filing for bankruptcy.
Types of Bankruptcy
The most experienced bankruptcy attorney in Gilberts can help you decide which type of bankruptcy is best for your situation. Chapter 7 bankruptcy is great for those who have a high debt load but low income. Filing for Chapter 7 bankruptcy eliminates most debts, such as credit card bills, medical bills, and student loans. There are some debts such as child support, and even back child support that cannot be eliminated. Your bankruptcy attorney may advise a Chapter 13 filing. This is suitable for those who have higher incomes and possess more assets. Instead of eliminating debts, your bankruptcy attorney may decide that it is best to restructure your debt. The goal is to have your debt paid off in five years or less by recombining your debt into one single, lower payment.
Bankruptcy for Businesses
Businesses are different from individuals. Your bankruptcy attorney will help you file for a Chapter 11 bankruptcy. Chapter 11 is a way for businesses to protect at-risk assets. For some individuals with a lot of at-risk assets, this may be appropriate as well, although uncommon.
Financial troubles are stressful, and the relief received from getting out from underneath it can make a world of difference in you and your family’s quality of life. Your attorney can help you decide which route is best for your unique situation. Contact Jackson Abdalla Law Group today for more information and to get started!
