Many people and companies find themselves facing overwhelming debt due to unforeseen circumstances. Baton Rouge attorney, Trenton Grand, wants to offer some insight into the options available to you if you need a form of debt relief.
Chapter 7 bankruptcy is the most radical form of debt relief available to an individual or a married couple. Under Chapter 7, certain assets will be sold to pay some or all of your debt to creditors. Necessary personal assets such as a house, car and clothing will be exempted from the sale up to a specific value. Your mortgage on your home cannot be relieved under Chapter 7. The purpose of filing Chapter 7 bankruptcy is to give people who have faced crisis out of their control such as a medical diagnosis, a divorce or unemployment, a chance to have a fresh start financially. Chapter 7 will include full disclosure of all of your financial records to determine if you are eligible for this type of debt relief.
Chapter 13 allows individuals and married couples to reorganize the way they are repaying the debt they have incurred. This type of bankruptcy allows qualified people to hold on to their possessions and pay the debt on a set schedule, usually over a three to five-year period. It is imperative for people who file Chapter 13 bankruptcy to adhere to the payment plan and not incur further debt. Collection efforts must be stopped by creditors once an agreement is reached. However, if you fail to stay on the scheduled payment plan, then credit collection efforts can start again.
Chapter 11 is for businesses or sole proprietorships to seek debt relief in a similar manner as individuals who file Chapter 13 bankruptcy. Chapter 11 bankruptcy allows a business to remain open while reorganizing. An agreement must be met with creditors stating the amount to be repaid, which is often less than owed, and a time-frame for the repayment. A trustee is assigned by the court to oversee the repayment process.
Bankruptcy Counsel in Baton Rouge
Grand Law Firm in Baton Rouge, LA offers expert counsel to those who need to file bankruptcy. Call today to discuss your options and determine the best plan for you or your company.