The word Bankruptcy is normally associated with certain people losing most or all of their money as a result of bad financial choices. It is also usually perceived as when a person falls on hard times because of too much unpaid credit card debt. However, circumstances that are sometimes out of your control may leave you with no choice but to file for Bankruptcy so it helps to know how to tell apart Bankruptcy Chapter 11 vs 7.
Every time you borrow money from anyone, it is (and should be) made with the intention of paying it back as soon as possible. But due to some unforeseen situations like severe illness and accidents, you may spend more money than what you make over a period of time which often results in your inability to pay your bills on time. Worse, you could also find your debt suddenly piling up with no signs of clearing then anytime soon. Filing for Bankruptcy may be the only option in this case and knowing what Bankruptcy Chapter 11 vs 7 is should go a long way.
Getting help from a Rockville bankruptcy attorney from Kurland Law Group assures that you’re working with someone dedicated to giving you a fresh start. We pride ourselves in easing much of the financial burden our clients deal with, particularly with educating our clients about bankruptcy law. Give our law office a call today to avail of a FREE case evaluation!
Being aware of the difference between Bankruptcy Chapter 11 vs 7 Rockville is one of best ways a reliable Bankruptcy attorney can assist you. Apart from doing whatever possible in providing our clients with a much-needed clean slate financially, our law firm is strong believer in Bankruptcy attorneys who:
Still thinking about what you should do next? Reach out to Kurland Law Group and a skilled Bankruptcy Chapter 11 vs 7 attorney will help you decide what move makes the most sense!
As defined by the Bankruptcy court of the United States, the process of Bankruptcy serves as a lifeline to people who seek debt relief but have zero capability of paying for what they owe. Bankruptcy is the US government’s way of helping individuals who are struggling financially to pay their debt through a repayment plan or asset liquidation. The five Bankruptcy chapters are:
Giving emphasis on how to differentiate Bankruptcy Chapter 11 vs 7 Rockville, the rest of this article will just focus on the following: Chapter 11 Bankruptcy and Chapter 7 Bankruptcy.
Chapter 11 of the Bankruptcy code allows debts of a partnership or corporation to be reorganized to help their business stay afloat while they repay their creditors over time. Additionally, some individuals may also seek debt relief through Chapter 11 Bankruptcy if they meet a certain criteria.
Businesses opt for Chapter 11 filing when they are not anymore able to keep up with their monthly expenses and make payments to creditors. Once Chapter 11 Bankruptcy takes effect, they become classified as ‘debtors in possession’ as they still have control over business operations and can even borrow additional money with court approval. Nevertheless, businesses are often able to successfully recover within only a few months after filing for Chapter 11 Bankruptcy.
Individuals file for Chapter 11 Bankruptcy when they owe a very high amount of debt but may not have enough assets to petition for Chapter 7 Bankruptcy or if their mortgage debt and unsecured consumer debt prevent one from filing for Chapter 13 Bankruptcy. Once it takes effect, good things like stopping creditor harassment and discharging some unpaid debts could happen. So even though the process may take time, it does have a ton of benefits!
To properly set apart Bankruptcy Chapter 11 vs 7 Rockville, you must know:
What makes Chapter 7 Bankruptcy the first option for people having trouble financially is it gives you a chance to no longer pay a single dollar to your creditors provided that you’re willing to give up some of your assets. Also known as liquidation, this Bankruptcy chapter lasts for around 3 to 6 months after your petition.
In most Chapter 7 Bankruptcy cases, an automatic stay will also be issued by the Bankruptcy court right after it is filed. This court order tells debt collectors and creditors to stop collecting from you immediately.
You can also take advantage of Chapter 7 Bankruptcy exemptions that allow you to protect certain property you own from being liquidated. For more details about the exemptions your assets may qualify for, reach out to a Bankruptcy Chapter 11 vs 7 Rockvillle attorney right away!
To be eligible for both Chapter 11 Bankruptcy and Chapter 7, the individual, partnership, corporation, or business should appear before the bankruptcy court and follow any given orders 180 days before the bankruptcy petition. You must also have received counseling from an approved credit counseling agency within 180 days before filing unless you are qualified for an exception.
Additional requirements for Chapter 11 Bankruptcy include filing for these petitions:
Additional requirements for Chapter 7 Bankruptcy include taking the following exams:
The legal services of a trustworthy Maryland Bankruptcy attorney is crucial in knowing whether you should file for Bankruptcy Chapter 11 vs 7, so speaking to one would be great!
Deciding between Bankruptcy Chapter 11 vs 7 is not easy. You need to know all the facts, consider many factors, and be aware of any possible exemptions before you file. All of us at Kurland Law Group are highly qualified to give the best legal services related to Bankruptcy, Loan modification, Short Sales, Asset Protection, and more.
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