Thinking about filing for Chapter 7 in Olympia WA? There are three main types of bankruptcy: Chapter 11, Chapter 13, and Chapter 7. Finding the right one depends on an evaluation of individual circumstances including income, assets, ability to repay debtors, and the reasons that bankruptcy is necessary.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is a type of business bankruptcy that allows a debtor that is a business to remain in business and avoid liquidation by reorganizing. This option is not available for individuals but may be an option if an individual does business as a sole proprietorship, partnership, or corporation.
Chapter 13 bankruptcy is the less severe of the two types of personal bankruptcy. Like Chapter 11, Chapter 13 is a reorganization-based type of bankruptcy, which is available for debtors who have the means to generate the income to pay their debts, or at least a portion of them. When a person files for Chapter 13 protection, their property is not sold. Instead, the court structures a repayment plan and, if the debtor makes payments according to the plan, the debtor may be able to keep property like vehicles or homes. Once the repayment plan is complete, the court can discharge any unpaid unsecured debts that remain.
Chapter 7 bankruptcy is the more severe of the two types of personal bankruptcy and is also available for businesses. Known as liquidation bankruptcy, Chapter 7 requires debtors to sell their assets to pay their creditors. Because this option may require debtors to sell things like their homes or business locations and property, it is not appropriate in many scenarios and is usually only considered when the debtor simply does not have the means to reorganize and repay debts.
Need a Bankruptcy Attorney?
Looking for help filing for Chapter 7 in Olympia WA? The first thing to do is to consult with an attorney to determine whether bankruptcy is the right solution. Depending on individual circumstances, it may be possible to avoid bankruptcy or to file under Chapter 11 or Chapter 13. If Chapter 7 is the right form of bankruptcy, an attorney can help clients quickly discharge debts.
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