What is Bankruptcy?
May 8, 2015
Some people have no idea what bankruptcy really means and have many questions, and not enough answers. Well, the office of Jeffrey Randa can make it quite simple for you. Bankruptcy is a way to get rid of some, or all, of your unwanted debt which you are no longer able to pay back. However, there are several different types of bankruptcy and depending on which chapter you file determines whether all or part of the debt would be forgiven. The most common Chapters of bankruptcy are Chapter 7, Chapter 11, Chapter 12, and Chapter 13. Your attorney will ask a few questions and determine which chapter you are most likely able to file.
Chapter 7, is the most common chapter of bankruptcy consumers file. It is also the only Chapter of bankruptcy practiced at the law office of Jeffrey J. Randa. We like to keep it simple and Chapter 7 most often is a simple process.
It is the process of liquidation of assets. Chapter 7 provides for the discharge of debt and liquidates any non-exempt property. While most consumers who file for Chapter 7 have very little assets that aren’t worth any real value, your experienced Attorney Randa will help you value your assets and do everything to protect them. In most cases, filing under Chapter 7, the bankruptcy Trustee will have nothing of any real value to liquidate to repay your creditors. You will be relieved of your debt and be able to keep your property, giving you breathing room to focus on your everyday living expenses.
Chapter 13, affords the debtor to reorganize their monthly expenses by coming up with a repayment plan that addresses their financial ability to pay. People who do not qualify for Chapter 7, either because their income is too high or they have disposable income left over at the end of the month, may need to file for Chapter 13. The court reviews the disposable income and makes a determination of how much income is available to repay the debt. Once the court approves of the repayment plan the funds collected are used to repay all or part of the debt to the creditors.
Chapter 11, is for designed for large businesses, while Chapter 12 is for farmers or fishermen. These chapters help businesses to reorganize and/or liquidate their debt so they can continue maintaining their business.
Jeffrey J. Randa specializes in Chapter 7 bankruptcy, with over 20 years of experience.
Thousands of people file for bankruptcy every year. You may have a million questions and just have no idea how it works, but you shouldn’t be afraid to ask. In the year 2014 alone, a total of 936,795 people and/or businesses filed for bankruptcy. Filing for Bankruptcy is to help you come out in better financial shape then before you filed. You should not be afraid to at least pick up the phone and inquire if bankruptcy is right for you. The friendly and experienced staff of Jeffrey Randa will help you determine whether you should file and whether you would qualify for the most common Chapter of bankruptcy, Chapter 7.
Filing for bankruptcy is a good way to get a financially fresh start by eliminating the debt that you are unable to pay, and allows you the opportunity to start the process of rebuilding your credit right away.