Bankruptcy: Understand Your Debt Relief Options
You worked your whole life to build your finances. It doesn’t take much to destroy your plans. It could be a bad investment, unexpected job loss or medical bills. When life interrupts your goals, debt relief through bankruptcy might be an option.
There are benefits to each chapter, but the facts of your case will determine your best option. Contact the bankruptcy attorneys at Schwartz Law Firm to find a solution given your unique situation.
A New Beginning
While many Michigan residents view bankruptcy as a last resort, it can serve as a valuable fresh start. Individuals, families and businesses filing for bankruptcy all have different needs, so there are several types of bankruptcy available to serve each demographic, including:
- Chapter 7 liquidation bankruptcy: Best for low-income debtors without a lot of assets, it can also be a good option if you have discharged debts above the value of the sold property.
- Chapter 13 wage earner’s plans: This is an option for people who do not qualify for Chapter 7. It allows you to make a repayment arrangement with debtors. You can pay installments to eliminate your debts over three to five years.
- Chapter 11 reorganization: Used mostly by businesses, it is also available to individuals with high assets and significant debt. It is primarily a reorganization of a business’s affairs, assets and debts.
- Chapter 5 reorganization for small businesses:This is a subchapter of Chapter 11. It allows business debtors and investors with less than $2.75 million ($7.5 million for one year under the CARES Act, if you file your petition after March 27, 2020). This is a streamlined process that can be elected under Chapter 11, and can aid small businesses.
Helping You Choose The Right Solution
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.