Even financially responsible people sometimes run into difficulties that prove impossible to resolve. When an individual’s debts pile up to the point that servicing them becomes unrealistic, getting in touch with a Bankruptcy Law Firm in Wellington FL can be the best available response. Visit Koplowbankruptcy.net or a similar site and it will become clear that the legal system provides for several potentially suitable forms of relief.
Three Types of Bankruptcy Individuals Can Consider
Filing for bankruptcy is always a serious step that should never be taken without plenty of advice and consideration. In some cases, though, bankruptcy ends up being the best possible solution to financial problems that have become too difficult to overcome by other means.
The federal government lays out the laws and regulations governing bankruptcy for residents of all 50 states. There are three types of bankruptcy described in federal statutes that are generally available to individuals:
- Chapter 7.
- Best suited to those looking for a fresh start, Chapter 7 bankruptcy revolves around the liquidation of debts and many assets. Among bankruptcy fillings submitted for individuals, Chapter 7 cases typically represent around 80 percent of the overall total. Successfully filing for Chapter 7 bankruptcy will wipe most or all of a debtor’s obligations out but can also subject certain assets to liquidation. People whose financial situations have deteriorated most seriously often default to Chapter 7 bankruptcy.
- Chapter 13.
- The next most common type of bankruptcy for individuals is that detailed under Chapter 13 of the relevant federal statutes. Aimed at those who are still earning significant amounts of income, Chapter 13 bankruptcy empowers the court to work out payment arrangements with creditors. After keeping up with the terms of the agreement for about five years, the debtor will normally be released from further obligations.
- Chapter 11.
- Although it is far more commonly used by corporations, the reorganization-focused style of bankruptcy detailed under Chapter 11 is also available to individuals with especially complex financial situations.
Experts are Ready to Provide Advice and Support
Consulting with a bankruptcy law firm in Wellington FL will make it clear whether seeking relief would be helpful and which form will be most appropriate. In some cases, a particular type of bankruptcy ends up being the best option of all.