Types of Bankruptcy

Bankruptcy is a common solution to financial difficulty. Debtors are able to restructure their debt, get it written off, or have other options when discussed with your Henrico VA bankruptcy lawyer at Canfield Wells LLP.

There are three main types of bankruptcy:

            Chapter 7

Chapter 7 bankruptcy, once filed, can allow for you to have a clean break. It is a liquidation bankruptcy, where a trustee will collect any non-exempt assets and sells them to pay for your remaining debts. Alimony, child support, and student loans are not covered by this chapter of bankruptcy.

            Chapter 11

Chapter 11 is for corporations or other businesses and organizations to reorganize their finances and allow them to keep their business alive while they are working to pay off their creditors. A Henrico VA bankruptcy attorney can help a large or small organization go through the bankruptcy process.

            Chapter 13

Chapter 13 bankruptcy allows a debtor to propose a 3-5 year repayment plan that the creditor can agree to pay off parts or all of what you owe from a disposable income. It is designed to give space or a pause so that you can restructure your own finances to be able to sustain repayment of your debts.

For those in need of an attorney to help aid or give advice from a Henrico VA bankruptcy lawyer, contact Canfield Wells LLP today to begin building your case and determine your best available options.