Most Common Types of Bankruptcy

Milwaukee Bankruptcy Lawyers


Filing for bankruptcy can feel like the end of the world. You may feel very discouraged knowing that life circumstances have made it so that you cannot meet your financial obligations. But, instead of viewing bankruptcy as a bad thing, you may want to start viewing it as a new lease on life. By filing for West Bend bankruptcy, you have a chance to take care of your debt in a manageable way and to start rebuilding your credit. There are several types of bankruptcy. The most common types are Chapter 7, Chapter 13, and Chapter 11.

Chapter 7 bankruptcy forgives you of most of your debt. You are required to liquidate your assets with a few exceptions. These exceptions depend on federal and state laws. A person called a bankruptcy trustee will be appointed to your Chapter 7 case to oversee the liquidation of your assets. You may file for West Bend bankruptcy once you have filled all the requirements of filing for Chapter 7 bankruptcy. At some point in the process, all of your creditors will be invited to attend a meeting where you will be present. Once your case is approved, you will be discharged from your debt. This means your debt will be forgiven. After this point, none of your creditors will be allowed to hassle you over your forgiven debts.

Chapter 13 bankruptcy is more common than Chapter 7 bankruptcy. Chapter 13 bankruptcy requires that you come up with a plan to repay your creditors within a three to five year period. After this period, your debt is forgiven. Chapter 13 bankruptcy is appealing for many because it allows you to keep more of your assets, including your home. Chapter 13 also allows you to be forgiven of certain debts which you cannot be forgiven of under Chapter 7. Once all requirements of your Chapter 13 bankruptcy agreement have been met, you will be discharged of your applicable debt.

Chapter 11 bankruptcy is generally for small business owners. If you own a small business and have more debt than you can handle you may want to consider filing for Chapter 11 bankruptcy. Chapter 11 West Bend bankruptcy allows you to retain your business while paying back your debts according to a structured plan. With this option, you do give up a certain amount of control of your business to court officials, those to whom you are in debt, or any counselors who have been assigned to help you rebuild your credit. Even though you may lose an amount of control, you will still be able to keep your business running with the hope that your financial future will improve.

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757 N. Broadway
Suite 401
Milwaukee, WI 53202
(414) 223-0000
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