Gulf Coast Bankruptcy Lawyers
At Alexander Shunnarah & Associates, our bankruptcy lawyers are here to help alleviate the unwanted stress that bankruptcy proceedings can often cause. Here at Alexander Shunnarah & Associates, we strive to ensure that the bankruptcy process goes smoothly. Our experienced lawyers are able to work under pressure to help minimize your debt, avoid penalties, and get your finances and life back on track.
What is Bankruptcy?
Filing for Bankruptcy allows those who are in debt to pay off their debts while under the protection of federal bankruptcy court. Any individual person, business, or corporation can file for bankruptcy in order to repay or diminish their debts.
Types of Bankruptcy
There are several different types of bankruptcy claims that can be filed in a court of law including Chapter 7, Chapter 11, and Chapter 13. Learning about the different types of bankruptcy filings can help you decide whether or not filing bankruptcy can benefit you.
Chapter 7 Bankruptcy: Either individuals or businesses can file for Chapter 7 Bankruptcy. Normally, this bankruptcy proceeding can last anywhere from three to six months. During this type of proceeding, there is a property liquidation process in which all of your property will be erased and seized. This property will be used to help repay your debt. Some items, such as your household furnishings, clothes, car, and other personal property may be exempt from being seized or erased during this process. Debt that isn’t secured, such as medical or credit card debt may be removed as well. Some property may be considered secured debt, meaning you have a choice between allowing all your property to be removed, or pay the amount that the property is worth.
Chapter 11 Bankruptcy: Filing Chapter 11 Bankruptcy is done more by businesses who are trying to pay off their corporate debt. Since Chapter 11 Bankruptcy is geared more toward businesses, filing can be pricey. This type of filing requires much time and energy. Another reason businesses file under Chapter 11 is because they are not eligible to file under other chapters. For example, if a business has too much income, they may not be able to file under Chapter 13.
Chapter 13 Bankruptcy: Those who are eligible to apply for Chapter 13 bankruptcy must have a great source of income. Under Chapter 13 Bankruptcy, the surplus income will be used pay off the debt in a lump sum. This process can last about three to five years. In order to file under Chapter 13, you must show proof that you have the funds to pay back your debt over the course of these years. Under this Chapter, the federal government sets your debt limit. The limit depends on how much debt you owe compared with your source of income. For secured debt under this Chapter, you have the option to pay for missed payments to avoid foreclosure and repay past payments over time.
Who Should File/Who Does Bankruptcy Commonly Affect?
Due to the strict rules and regulations of Chapter 7, not everyone is eligible to file for this type of Bankruptcy. If you fail to meet the criteria for Chapter 7, you will be forced to file under Chapter 13 Bankruptcy instead. Just about anyone can file for Chapter 13. To file under this Chapter, you must only show a viable repayment plan method. This method illustrates how you’ll repay your debt. Businesses usually don’t file for Chapter 13, instead, they file for Chapter 11 Bankruptcy.
Personal vs. Business
While it is common to get rid of unwanted debt for both personal and business reasons, there are different rules for filing each type of Bankruptcy.
For personal bankruptcy, Chapter 7 or Chapter 13 Bankruptcy is commonly filed. Chapter 7 is for those who have lower income and who cannot pay off their debt anytime soon. However, Chapter 13 is for anyone who can pay off their debt only if they come up with a payment plan.
Why Choose Us?
At Alexander Shunnarah & Associates, we can help you with creditors to evaluate your options. Our experienced bankruptcy lawyers can help you with any planning or preparation you need to get your life back on track. Don’t hesitate to contact us today to schedule a consultation.