Types and Chapters of Bankruptcy
There are four different types of bankruptcy filings in the United States Federal Bankruptcy Code. They are:
• Chapter 7 Bankruptcy (liquidation)
• Chapter 11 Bankruptcy (reorganization)
• Chapter 12 Bankruptcy (adjustment of debts of a family with regular annual income) and
• Chapter 13 Bankruptcy (adjustment of debts of an individual with regular income)
Depending on your financial situation and qualifications, you can file for any of these types of bankruptcy. Chapter 7 is the most common, especially with companies, individuals, and married couples.
A Chapter 7 bankruptcy in Ocala allows you to scrap all your debts and start over. Our Ocala Chapter 7 bankruptcy attorney here at The Law Offices of Justin McMurray, P.A. can help you with the entire bankruptcy process. In a Chapter 7 bankruptcy, you get the chance to a clean financial slate. Once the petition has been filed, a trustee or administrator is then appointed to the case to handle the sale of your assets. However, this does not mean that everything in your possession is going to be put up for sale. State and federal laws allow certain exemptions so you can keep some of your property and liquidate others as payment for your debts. Since only a portion of the debt is paid, the remainder of your financial obligations is discharged or forgiven.
An Ocala Chapter 11 bankruptcy is very similar to a Chapter 13 filing, only there is no limit in the amount owed by the debtor. While a chapter 11 bankruptcy was originally intended to be used only by large corporations, many individuals now file for a Chapter 11 Ocala bankruptcy because of the more lenient amounts of debt alllowed.
Chapter 13 Bankruptcy in Ocala, on the other hand, is specifically designed for individuals, wherein you as the debtor can retain control and ownership of your assets while the case is being processed. Your Chapter 13 Ocala Bankruptcy lawyer can help you work out a repayment plan that can be stretched out from three to five years. In this arrangement, parts of the dept may be discharged, upon consideration of the debtor’s income. While a chapter 13 closely resembles a chapter 11 bankruptcy, limits on the debt amount involved exist in the first kind.
If you need help in your bankruptcy petition, do not hesitate to call us up at The Law Offices of Justin McMurray, P.A. We offer expertise in bankruptcy and foreclosure defense.