You always have alternatives when it comes to debt relief. However, in some instances, filing Chapter 7 (bankruptcy) is a sound solution. In business situations, however, it may be better to avoid Chapter 7 altogether, especially if you want to remain in business. Therefore, you need to speak to a bankruptcy lawyer and carefully review your solutions.
Managing Personal and Business Debts
By speaking with a lawyer who is knowledgeable in Chapter 13, Chapter 11, or Chapter 7 bankruptcy relief, you can find out what you need to do to manage your personal or business debts. For instance, if you wish to remain operational as a business, you may want to file a petition under Chapter 11. This type of filing enables the debtor to adjust his or her debts. This can be done by extending the time for repayment or lowering the amount of debt.
If you list yourself as a sole proprietor, you can also find debt relief by opting for a Chapter 13 (repayment) bankruptcy. You can also seek this solution as an individual. The type of filing allows debtors to save their houses from foreclosure so they can catch up on the past due payments. This catching up is done through a payment plan outlined by the court. A court may dismiss a chapter 7 bankruptcy in Montgomery, AL if it deems that an individual’s debts are mainly consumer-based.
Don’t Abuse Your Right of Filing
You have to be careful about filing a particular bankruptcy claim as choosing the wrong solution can end in a finding of abuse of a specific filing. Abuse is presumed if the total monthly income over the past five years is over a certain amount of money or about one-quarter of the obligor’s unsecured debts provided that the amount is $7700 or more. Hardship is considered for chapter 7 bankruptcy filings. Otherwise, they may be dismissed and converted to chapter 13.
You can run into a lot of complications in filing for bankruptcy if you don’t have the help of a lawyer. If you are interested in filing bankruptcy, contact a site such as Visit the website today to get further details about getting out of debt this way.
