The decision to file for bankruptcy is something that must not be taken lightly, this is a decision that will have a long term impact on your life. However, once you have decided that bankruptcy in Lake Forest is the best solution for your particular financial situation then you need to decide which Chapter is best for you.
As an individual or a small or medium business the two most obvious choices are Chapter 7 and Chapter 13. Chapter 7 calls for almost total liquidation, Chapter 13 allows you to reorganize your finances. There are a number of rules, pros and cons that you may or may not be aware of that will help you decide which is best suited for your particular situation.
Chapter 7 bankruptcy:
In Chapter 7 bankruptcy the individual in debt will be forced into liquidating the majority of their assets, their creditors get paid from the money raised when the assets are sold by a court appointed trustee. Once the process is completed the debtor’s debts are discharged, thus allowing the individual the opportunity of a fresh start. The entire process can take as long as six months, during this time a meeting is held with the creditors when the assets are discussed, normally the creditors agree to the possible outcome of the asset sale and the percentage of the debt they hold that will be recovered.
Chapter 13 bankruptcy:
Chapter 13 bankruptcy in Lake Forest is usually preferred by those who are gainfully employed and have assets that they do not want to lose. When one files for Chapter 13, he or she, usually along with an attorney develop a debt reorganization plan. This plan takes into account the total debt, all the normal monthly expenses and the total income. With these three variables a plan is developed for repayment of the debt, interest free. If the court agrees with the plan and the time frame it is handed to a trustee to administer.
Chapter 7 bankruptcy is often the best choice for those who are unemployed and have very little in the way of assets; Chapter 7 is also the best way for those who have an upside-down mortgage which simply means their house is worth less than the outstanding loan amount.
Chapter 13 bankruptcy in Lake Worth is the better choice for those people who are employed and have assets that they want to keep as well as those who are facing home foreclosure.
If you are facing bankruptcy in Lake Worth there are still choices available to you. To understand what is best for you based on your particular situation you are invited to talk to Chicago Debt Solutions.
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