Many people who are deep in debt and feeling overwhelmed cannot stand the idea of declaring bankruptcy. They see it as a personal failure and an embarrassment. In the past decade, the Great Recession led many U.S. residents to file for chapter 7 or chapter 13, taking much of the stigma away. A bankruptcy attorney in Gainesville, GA helps clients with the application paperwork and setting up a repayment program if the person is eligible for chapter 13.
Chapter 11
The knowledge that a successful businessperson who was later elected president of the United States declared bankruptcy has also helped ease the stigma. It should be noted that these were business bankruptcies filed as chapter 11 and not personal filings. Nevertheless, with six of these filings on his record, it verifies that the process has become a widely acceptable one for allowing people to make a fresh start.
All these filings were for casino and hotel businesses, reflecting the struggles experienced by the gaming industry. The most recent filing was in 2009, after the recession had been inflicting serious damage on the U.S. economy for years.
Chapter 11 filings are intended to allow businesses protection from creditors for a short time so they can reorganize and attempt to regain financial stability. Individuals are allowed to file this type of petition as well, but it is significantly more expensive to do so.
The businessman in question never filed for personal bankruptcy, but he did at one point have substantial personal debt when declaring a business bankruptcy. He sold his personal airline and a 220-ft. yacht to help pay off that personal debt. Most ordinary citizens do not have that option.
Chapter 7 and Chapter 13
Individuals may hire a bankruptcy attorney in Gainesville, GA to help them wipe out all of their debt with a chapter 7 petition. Others set up a chapter 13 payment arrangement that includes all their creditors and lasts up to five years. A Chapter 7 filing with a firm such as Chris Carouthers & Associates forces the person to dissolve certain assets to pay off as much debt as possible, but most bankruptcy petitioners do not have much left by this point.
