What each different chapter of Bankruptcy covers
While being bankrupt is a state most people fight through life to avoid, filing for bankruptcy might be the saving grace you need to recover from debt. If you are filing for bankruptcy in the United States, you have an option to file under six chapters, those being: 7, 9, 11, 12, 13 and 15. Understanding what each chapter of bankruptcy covers is best when you have legal knowledge. At Loris Law Firm, our bankruptcy attorney Mobile Alabama trusts can help you get answers to any financial questions you might be having. We can help you understand the different chapters of bankruptcy.
Chapter seven is the best option for most people intending to file for bankruptcy because it covers liquidation. The liquidation process involves selling nonexempt assets to help cover debts. The properties subject to an exemption under chapter 7 include your home, retirement benefits, and vehicles. Notably, both state and federal laws on bankruptcy offer exemptions. Working with Loris Law Firm, a trusted bankruptcy attorney Mobile Alabama loves, will help you gain knowledge of the exemptions available.
Chapter 9 is meant for municipalities to gain protection from debts. School districts, towns and even counties can file chapter 9 bankruptcy as they plan to adjust their debts.
Chapter 11 covers those businesses and individuals seeking to reorganize their debts. Hence, even with debts, debtors can still retain control of the business.
If you are a family farmer or fisherman, then chapter 12 is your recourse if you are in financial distress. With the timeline of repaying creditors ranging from three to five years, you will have adequate time to repay your loans as a debtor.
Even with regular income, financial distress can affect anyone. Chapter 13, therefore, seeks to help you to develop a repayment plan.
Foreign debtors with properties in the United States can file for bankruptcy using chapter 15 as it aims to create cooperation between the foreign debtor and creditors.
Those struggling to pay debts or are unsure of your next steps should contact Loris Law Firm immediately. We have years of experience to use for your case. We are ready to help.