Drowning in debt and being unable to endure regular calls and letters from creditors can be a phase in your life, and while it is not the end of everything, it does feel annoying. If so, declaring bankruptcy is an efficient way to take back control of your money and relieve some of the pressure associated with paying off debt.
In Orlando, filing for bankruptcy is a legal procedure that can benefit you or your company by allowing you to start over by removing obligations that you are unable to pay. It is not as simple as it seems, but it will give you financial relief. To get professional help, all you have to do is Press The Restart Button.
Declaring bankruptcy will have a substantial influence on your credit score and also can lead to the potential loss of assets that you retain. Understanding bankruptcy’s advantages is crucial before filing for it.
What Are My Options For Filing Bankruptcy?
- Filing Bankruptcy under Chapter 7
One of the most popular forms of bankruptcy that people file is Chapter 7, which has also come to be known as liquidation bankruptcy. Here, your case will be handled by a mediator and solved using a few tactics. Let’s explore how it works.
- An appointed trustee will be in charge of your case from the moment you file for Chapter 7 bankruptcy.
- With the exception of the exempt assets, this trustee will assemble all of your assets and sell them for the best price in order to settle your debt with your creditors.
- A discharge against this will result in the majority of your debts being written off.
- Filing Bankruptcy under Chapter 11
Individuals cannot file for bankruptcy under Chapter 11. Businesses of all kinds, including corporations, partnerships, and limited liability firms, are the target audience of this bankruptcy filing.
- A company can continue with operations while reorganizing its debts when it files for Chapter 11 bankruptcy.
- The company will have to collaborate with the creditors to develop a strategy to pay off part or all of the debt within a given time frame.
- The company must draft a restructuring plan outlining the terms of debt repayment.
- Filing Bankruptcy under Chapter 13
An individual with a regular income who wishes to return part or all of their debt over a predetermined length of time can file for Chapter 13 bankruptcy, commonly known as your organization’s bankruptcy. This is the best short-term solution, but it comes with a long-term commitment.
- You will have to work with a trustee to develop a repayment plan for all of your debt over a period of three to five years when you file for Chapter 13 bankruptcy.
- Paying off the debt within a given time frame entails restructuring the entire loan in a monthly way.
- The trustee will allocate the money to your creditors, and you will be required to pay them each month.
What Are The Benefits Of Filing For Bankruptcy?
When you find yourself in a difficult situation, taking this step can be a lot. Knowing what choice to make when you have a pool of options available is important. There are multiple benefits of filing for bankruptcy; let us look at two of them.
- Gets Rid of Debt
You may get rid of a lot of different kinds of debt by filing for bankruptcy. This covers any debts you may have, such as credit card debt and medical expenses. By allowing you to reorganize and make up for the missing payments this can provide you a fresh start and help you recover your financial life.
- Prevents Creditor Harassment
Creditors are not going to call you about payments once you file for bankruptcy since it will automatically stop their efforts to recover debt from you. This stops you from receiving any letters, calls, or emails from your creditors.
