While many people associate failure and financial devastation to bankruptcy, it actually is a valuable resource for those looking to get back on solid ground and rebuild their credit. If you are considering filing for bankruptcy but don’t understand all the details, consulting with a skilled bankruptcy is advised.
Here are a few of the options available when working with the bankruptcy law services Pittsburgh PA attorney.
Filing for Chapter 7 Protection
Perhaps the most common and most misunderstood of all the bankruptcy options, filing for Chapter 7 is best for individuals who have no available funding to get out from under the financial burden they are facing. This is not a one type fix for all issues of financial crisis, but it does help those who have tried other means and simply can not get back on track. Your bankruptcy lawyer will consult with you so you understand the future ramifications of filing for bankruptcy, so you are not entering into this arrangement lightly.
With the Chapter 7 bankruptcy, your attorney is going to collect all your debts and file protection papers to have the entire debt written off. Wiping the slate clean does not come without a price, and although it gives you breathing room again, it does stay on your permanent record for up to a decade.
Filing for Chapter 11 Protection
The term Chapter 11 protection has been heard often in the news in recent years, and that is because this protection is usually afforded to businesses that are trying to keep from having to close their doors for good. Unlike the Chapter 7 bankruptcy where the debt is written off, the business owner is simply looking to restructure the debt in a way that allows them to remain in business as they try to turn things around.
The bankruptcy attorney will be able to draw up specific papers to allow the institution to remain open while the proceedings are underway.
Filing for Chapter 13 Protection
There may be a financial situation where you feel at the moment you can not get out from the mountain of debt you have accumulated, but you have a plan to pay off the debt. In this instance, your bankruptcy attorney can draw up Chapter 13 papers that will protect your personal assets from being sold off while you make a plan to pay off all the existing debt. Once your attorney files the papers, the courts will structure a plan in which payments will be made to ensure the protection of assets.
If you are able to follow through with the payment arrangement, you can begin to repair the damage to your credit over the years and the mark of the bankruptcy does not have such a negative impact on your financial reports.
As you can see, depending on your unique situation and your willingness to make things right, your bankruptcy lawyer has a number of options that could help you turn this financial crisis into a positive.