Understanding Bankruptcy And Your Options
Managing your finances can be tremendously stressful. When you are behind, it is important to remember that you have options. Sarah Gold, the founding attorney of Gold Law Firm, has worked with clients throughout New York. She can listen to your concerns, answer your questions and discuss potential solutions. Her goal is to help you get back on your feet.
Chapter 7, 11 And 13: What Is The Difference?
There are many different forms of bankruptcy and they each offer their own benefits and drawbacks. Chapter 7 bankruptcy is commonly known as “liquidation”. This is because your assets will be sold off in order to repay your debt. Whatever remains will be discharged. Both individuals and businesses qualify. It is important to know that this will have a negative impact on your credit score, which may make it difficult to make large purchases in the future.
Chapter 11 bankruptcy is primarily used by businesses. Its purpose is to create a plan where, over time, you will pay back your creditors. All parties, including the court, must agree on the terms before it becomes official. Often times, this allows a business to retain control of their assets, even after they file. You may have to downsize, but you are able to remain operating.
Lastly, Chapter 13 is an option that may be useful for individuals who meet certain requirements. Your secured and unsecured debt cannot exceed a certain amount and you must have a steady income. One of the advantages is that you will be able to keep many of your assets. You will be put on a payment plan and will likely be paying your creditors less than you originally owed them. Your remaining debt will be forgiven after a certain period of time.
Determine What Is Right For You; Call Today
Gold Law Firm is a debt relief agency. Gold Law Firm helps people file for bankruptcy relief under the Bankruptcy Code.