When burdened with debt, people often want to know what the difference is between various types of bankruptcies—a personal bankruptcy, a business bankruptcy, and a Chapter 7, 11, or Chapter 13. Sean P. Patterson can explain differences in bankruptcies in detail and review your financial situation to see which is most appropriate. In general, some differences include:
- A chapter 7 involves assets liquidation to pay off debt.
- A Chapter 7 benefits people with few assets and extensive credit card debt and other unsecured debt.
- A chapter 13 bankruptcy, also called reorganization bankruptcy, uses a three or five year repayment plan and can often reduce the amounts owed for certain debts.
- A Chapter 13 bankruptcy provides advantages for people who have considerable assets they want to keep, yet need a better way to manage debt.
- Business bankruptcy can be either a Chapter 7 liquidation or a Chapter 11 reorganization.
- When a company files Chapter 7, they are going out of business.
- A Chapter 11 bankruptcy is used exclusively by businesses or persons with considerable wealth and is the most expensive type of bankruptcy.
- A Chapter 11 in allows the business to continue operations and creditors to receive some payment as opposed to having debt discharged.
Is bankruptcy right for you?
Before resorting to bankruptcy, other financial solutions should be tried. A lawyer can help you weigh all factors involved, such as the type of debt, what advantages various types of bankruptcy can offer you, and which debts bankruptcy discharges and which it does not. A bankruptcy lawyer in Reno can help you decide whether bankruptcy is right for you. At the Law Offices of Sean P. Patterson, we understand that you already feel bogged down in debt. We offer a payment plan that makes our quality services affordable. Our services can be retained for as little as $100.
Seek an experienced bankruptcy lawyer
Bankruptcy laws are complex and documentation for filing is extensive. A bankruptcy lawyer can ensure you meet all requirements, comply with deadlines, and guide you through the legal process. Unless you seek legal advice from an experienced lawyer, you may not effectively address your debt. A knowledgeable bankruptcy attorney can prove invaluable when dealing with insolvency.
Sean P. Patterson
Sean P. Patterson is an experienced bankruptcy lawyer. Our law firm can explain the nuances of bankruptcy and help you determine whether it is appropriate for you. Contact the Law Office of Sean P. Patterson today.