If you hear someone talking about chapter 13, chapter 11 or chapter 7, you might assume the topic is the latest novel on some bestseller list, right? However, if the conversation also includes words such as “creditors” “threat of foreclosure” or “debt relief,” then it might not be books but various types of bankruptcy at the center of discussion. It’s no secret that many South Carolina residents are among those throughout the nation who have been struggling to get back on their feet after serious economic crisis.
Many people hesitate to reach out for support when they’re in trouble financially. Perhaps they’re embarrassed or don’t want others to know their private business. However, there are plenty of hard-working, successful people who, for one reason or another, find themselves facing tremendous financial debt that may prove disastrous if they don’t do something about it.
Various options available
There are often different approaches to situations necessitating immediate debt relief. No two circumstances are exactly alike; therefore, what’s right for your next-door neighbor might not be best for your particular needs and financial goals. The trick is to figure out what options are available and which one provides most of what you need to restore financial stability in your life. Often, people choose between the following types of bankruptcy as alternate forms of debt relief:
- Chapter 13: If you’re worried about losing your home to foreclosure, this might be an option to consider as it allows individual debtors the opportunity to catch up on payments through carefully devised payment plans. Providing you have regular income, you might be eligible for this form of debt adjustment.
- Chapter 11: This type of comprehensive debt restructuring is often the best choice for corporations, partnerships and other business owners. Whether your creditor reduces the debt or extends the payment periods, if Chapter 11 works, it allows you to stay in business while obtaining debt relief.
- Chapter 7: In this form of bankruptcy, an appointed trustee liquidates all nonexempt assets and sells them in order to gain funds to pay off creditors and all existing debts.
Financial matters are intensely personal, and it’s understandable that you’d want to be able to trust the person with whom you are disclosing your most private financial information. Many people before you have gone through terrible financial crises and have not only bounced back, but eventually built up savings and moved toward financially stable and successful futures. One way to ensure privacy while seeking sound legal counsel is to arrange a consultation with an experienced bankruptcy attorney.