A business or an individual can declare bankruptcy once they have ascertained that it has become impossible to pay off one’s creditors. It can give you a chance to start over from a financial point of view, as most of debts are relieved after bankruptcy as been filed.
Chapter 7, or liquidation bankruptcy, means that your “estate” – i.e., your assets – is sold in order to pay off your creditors.
A reorganization bankruptcy can also involve the selling of assets, but more often than not you can retain a majority of your assets while your creditors’ needs are assessed. Reorganization bankruptcies can be filed under the following guidelines:
Chapter 9 – municipalities
Chapter 11 – businesses and individuals with many assets
Chapter 12 – farmers, fisherman
Chapter 13 – individuals with steady income
Chapter 15 – international cases
Contact us today to learn more about your options under the current bankruptcy laws.
Ralph W. Gorrell, Attorney At Law is here to help. Please review our site and see what we may be able to offer you. Feel free to Call us at (336) 379-9416.
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