Bankruptcy is an option that many individuals consider as a means of resolving debt. Although many people have heard of bankruptcy, not everyone is fully aware of what is involved when considering bankruptcy proceedings. Individuals that are interested in rebuilding their financial lives may feel that bankruptcy is the best option for them. Bankruptcy does give many people the opportunity to dissolve or pay off existing debts while allowing them to rebuild their financial futures. Bankruptcy is a legal process that should be encountered with the assistance of a qualified bankruptcy attorney. At JMH Legal Group we have assisted numerous individuals with the navigation of a consumer bankruptcy proceeding.
There are two types of bankruptcy that are available for consumers. Chapter 7 bankruptcy is very popular amongst those that are interested in a rapid bankruptcy proceeding. Chapter 7 bankruptcy usually takes around 3 to 4 months for completion. This particular form of bankruptcy involves the liquidation of all assets in order to pay existing debts. Many people prefer this form of bankruptcy because it is one of the most efficient and comprehensive ways of ending the often nonstop debt and collection proceedings which can include wage garnishments and collection phone calls. Those that are interested in Chapter 7 bankruptcy must be willing to take a means test which is administered by a qualified attorney in order to determine if Chapter 7 bankruptcy is applicable for their case.
Chapter 13 bankruptcy is an option for those that wish to pursue bankruptcy without liquidating their assets. Under this form of bankruptcy, consumers must be willing to repay their debts over a 3 to 5 year period. To be considered for this form of bankruptcy, consumers must submit personal financial information and be willing to submit a repayment plan to the bankruptcy court. Once the payment plan is accepted by the bankruptcy court a trustee will ensure that payments are allocated to the creditors accordingly. Having the assistance of a trained bankruptcy lawyer is highly recommended to navigate this process.