Are you drowning in debt? Avoiding bill collectors? Do you see the numbers in your bank account dwindling with no ideas about how to replenish them? If this is your situation, declaring bankruptcy might be the right choice for you. At Alpina Legal, we help people get back on their feet by walking you through this process and we invite you to come in and let us help you determine whether this option is right for you.
‘What exactly does that entail?’ you may be wondering. There are two very common types of bankruptcy, both of which we’ll discuss here. The first is called Chapter 7 bankruptcy. In essence, you sell some of your property in order to help pay down your debt. In return, your unsecured debt will be erased. And, there are some kinds of poperty that are exempt, meaning you won’t be required to sell them–like your house, a car, clothes, furniture. Remember, that there are some kinds of debt that cannot be alleviated or erased–this includes spousal and child support, as well as tax obligations.
The other very common form of bankruptcy is Chapter 13. This is for those who are known as ‘wage earners’. That’s because you’ll need a reliable source of income because you’ll create a payment plan that shows how you plan to pay back the debts you owe over the next three to five years. Based on how much you earn, how much you owe and how much you would have paid if you had filed Chapter 7 bankruptcy, an amount will be determined that you will then pay down.
These are the two bankruptcy types usually used by individuals. Next time, we’ll discuss the kinds of bankruptcy you would declare for your business.
In summary, we’ve tried to provide you with the basics about declaring bankruptcy, but this is just the beginning. We’d like to invite you to come in for a consultation and we can help you determine whether bankruptcy is the right decision for you, and if it is we’ll do the leg work!