The chapter of bankruptcy that most people think of when they discuss filing bankruptcy is Chapter 7 and Chapter 13. Other bankruptcy filing options include Chapter 9, which allows for the reorganization of debt that is overseen by municipalities. There is also a Chapter 11, which allows for debt restructuring usually when the total debt limits are much higher than a Chapter 13. This would be in the case of a large company or corporation that is intending to file bankruptcy but would like to stay in operation and just eliminate their debt load and restructure. Any individual or business considering bankruptcy should seek the opinion of a bankruptcy attorney to get more information on the different chapters of bankruptcy and learn which chapter would be best for their individual financial situation. It is wise to be well informed and do your homework before making any decisions since a bankruptcy filing will stay on one’s credit report for 7 to 10 years.
Most average Americans that are facing bankruptcy consider either Chapter 7 or Chapter 13 bankruptcy. As a matter of fact, most of the financial legal proceedings filed in the US by individuals is one of these two chapters of personal bankruptcy. Again, an experienced bankruptcy attorney will be able to carefully evaluate the individual’s financial situation and determine which of these chapters of bankruptcy would best benefit the individual. Since the changes to the bankruptcy laws back in 2005, the process of filing bankruptcy has become more complicated. There are new guidelines for individuals filing personal bankruptcy as far as qualifying to file, what debts can be discharged, required credit counseling and financial management courses that must be completed, more complicated exemption laws and other regulations that must be followed. This is why it is crucial to find a bankruptcy attorney that you are comfortable with since you will be working very closely with them to meet all of the legal requirements during the bankruptcy proceeding. A bankruptcy attorney’s role is to have their client’s best interests first and foremost. This includes a quick and smooth personal bankruptcy filing with a successful bankruptcy discharge.