A lot people associate filing for bankruptcy as admitting hopelessness or being totally and completely broke. This is not, however, the case. More often than not, it is filing for bankruptcy that allows for indebted citizens or businesses to salvage what they have in order to start their credit anew. There are several different kinds of bankruptcies that could be filed for and depending on the situation and financial standing of the person in question.
Chapter 7 Bankruptcy, for example, is more commonly known as straight bankruptcy. It allows for assets to be liquidated, thereby clearing a person of all debts and allowing for them to have a better grasp of handling their financial situation. According the website of lawyers Gagnon, Peacock, Vereeke, PC, filing for this kind of bankruptcy is often how people are able to get back what they have lost and allow them the break and fresh financial start that they need in order to not be so debilitated by debt. However, this kind of bankruptcy demands a certain means test and the person filing for it must fit into a particular income bracket in order to qualify for this kind of bankruptcy.
There are other types of bankruptcies to file for, though. Chapter 13 Bankruptcies are more targeted towards farmers and fishermen, for example, as it allows payment plans that extend for three up to five years. Filing for Chapter 13 Bankruptcy also allows for you to file for Chapter 7 bankruptcy in the future as well, if that is an option that is deemed necessary for your financial situation.
It is recommended that, whatever your situation or the type of bankruptcy that seems most attractive to your circumstances, you contact a legal professional who has had experience in dealing with cases of this nature. This is advised since the matters of bankruptcy are rather complex and having the help of someone who knows their way around the block, so to speak, would be better equipped for the journey.read more