YOUR GUIDE TO CHAPTER 11 BANKRUPTCY FOR INDIVIDUALS
Financial problems can be daunting and feel like you’re in an endless cycle of debt. If you are an individual with a large amount of debt, you may have heard about bankruptcy Chapter 11. But what does it mean and what should you do? Let’s take a look at the basics of bankruptcy Chapter 11 for individuals and how it can help those in financial distress.
WHAT IS BANKRUPTCY CHAPTER 11 FOR INDIVIDUALS?
Bankruptcy Chapter 11 is often referred to as “reorganization bankruptcy” because it allows an individual to reorganize their finances under the protection of the court. It allows individuals to keep their assets while they work on paying off their creditors over time. This type of bankruptcy is available to individuals, businesses, and corporations, and must be approved by the Court.
BENEFITS OF CHAPTER 11 BANKRUPTCY FOR INDIVIDUALS
There are several benefits to filing for bankruptcy Chapter 11. First, your assets will be protected from creditors while you work on paying off your debts. Second, filing for a bankruptcy chapter 11 prevents creditors from garnishing your wages or taking other action against you during the process. Finally, if you successfully complete your payment plan under chapter 11, any remaining unpaid debt will be discharged by the court upon completion. This means that once all debts have been paid off, any remaining balance will not need to be paid back.
IS CHAPTER 11 RIGHT FOR YOU?
If you're considering filing for bankruptcy chapter 11 as an individual, then there are certain steps that must be taken before doing so. You must first find a qualified lawyer who specializes in this type of law to represent you in front of the court and file all necessary paperwork correctly and on time. Once all paperwork has been filed correctly, then your case can move forward in front of the court with a hearing date set up soon after that.
Filing for bankruptcy chapter 11 as an individual can provide much-needed relief from overwhelming debt if done correctly and with legal counsel involved throughout the entire process. While there are certain requirements that must be met, once the case is filed you may gain some much needed relief from overwhelming debt through this form of protection provided by the courts! Remember, the bankruptcy lawyers at Almeida & Davila are here to help you when considering filing for any type of personal bankruptcy so that all applicable laws are followed correctly and you get the best result possible!