There are six types of bankruptcies under the bankruptcy law. A Bankruptcy Attorney Huntersville NC may choose to specialize in a single type, handle just a few types, or handle all types of bankruptcy. The advantage of a specialist is the attorney having much more experience in that field, meaning they may find several small savings that others would miss, which could potentially add up to a significant amount of money. The advantage of finding someone that handles all types means they can provide a more detailed analysis of which type of bankruptcy would be best, maximizing the debtor’s options.
Chapter 9 bankruptcy: Unless you are a city or other municipality, forget about this; it is only for cities, towns, villages, and related entities such as school districts.
Chapter 7 bankruptcy: This bankruptcy is called a liquidation by Bankruptcy Attorney HUntersville NC because that is exactly what happens. With only a few exceptions for personal essentials, all of the debtor’s assets are placed into an estate. The estate then sells everything and distributes the proceeds to the creditors. This sale satisfies the debts and the creditors can no longer collect, even if they are still short.
Chapter 11 bankruptcy: If the debts are business related, a Chapter 11 reorganization can be elected. This entails allowing the business out of certain contracts and leases that are unaffordable and entering into a repayment plan for its remaining obligations. It also usually means restructuring the business to increase profitability. If necessary, a trustee for the creditors may operate the business for a limited period of time. Upon completion of the reorganization plan, remaining debts are discharged.
Chapter 13 bankruptcy: A Bankruptcy Attorney Huntersville NC can file this for individuals and is primarily used for things like consumer debts. To choose Chapter 13, the individual must have a regular income. The advantage of Chapter 13 is being able to keep all assets, including houses and other items. This is because instead of selling everything off like in Chapter 7, the individual enters into a court approved repayment plan like in Chapter 11.
Chapter 12 bankruptcy: Chapter 12 is nearly identical to Chapter 13, but provides a shorter repayment period for farmers and fisherman.
Chapter 15 bankruptcy: This includes all complex bankruptcies involving assets and debts in multiple countries.
