What Options Are Available?
When faced with the option ofbankruptcy, you have the choice of either filing for Chapter 7, personal debts,or Chapter 11, business debts. If you qualify, both Chapters will allow you to resolve your debt problems and will provide for protection from creditors under Federal law. If you think that filing for bankruptcy is an option for you, you will need to discuss the details of your case with a qualified bankruptcy attorney who willreview your debts and decide which Chapter would best fit your needs.
Chapter 7
Under Chapter 7, the debtor receives complete relief from discharged debts. There is no payment plan or requirement to reaffirm the debt. You must submit a complete list of all assets, liabilities, and income sources. This information will be presented to the court along with a Petition for bankruptcy protection. In Chapter 7, you may be able to negotiate some debts but this is rare. About 30 days after the Petition is submitted to the court, a hearing of the creditors will be scheduled. This hearing will allow your creditors the opportunity to speak before the court. Once the court has heard from the creditors and they havehad the opportunity to question you about your financial situation, the court willthen review the details of your case and make a decision. In most instances, if you qualify,a discharge is issued within 4 to 6 months after the creditor’s hearing. To explore this option, contact a qualified Chapter 7 Bankruptcy lawyer.
Chapter 11
Unlike Chapter 7, which completely eliminates mostdebt liability, Chapter 11 allows a business to restructure their debt so that they cancontinue to operate. Under this Chapter, business owners work with the court appointed Trustee to restructure the debt, liquidate some assets, if necessary and come up with a plan that will allow the businesstocontinue to operate and grow. To explore further options inrestructuring your businessor in filing for Chapter 11,contact a qualified business bankruptcy attorney who can review your debts and advise you as to whether filing for Chapter 11 is thebest option.
The bankruptcy attorneys at Goldstein & Scopellite, PC know Chapter 7 and Chapter 11 bankruptcylaw.
Goldstein & Scopellite, PC, established in 2002,has officeslocated in Dallas, TX and Tucson, AZ. For more information, see theirlocal listing in D Magazine.
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