A lot of people have a negative feeling toward bankruptcy and it is often viewed as a financial failure. Unfortunately, because many people view it as a financial failure, those that have to file for bankruptcy often do so with great reluctance and shame. Here is some information complied by Danville VA Best Bankruptcy Law offices to help you understand all your options.
There are a lot of myths involved with filing for bankruptcy and the most common one is that people filing for bankruptcy are financially irresponsible. In reality, the most common reasons why people file bankruptcy is due to long-term unemployment and medical bills as a result of serious illness or injury. If someone has a serious illness, the cost of long-term medical care can be more than a working family can afford.
Another common bankruptcy myth is that once you file for bankruptcy, all your past debts are discharged and you can start over. Bankruptcy law is very complicated and each situation is different. There are 6 different types of bankruptcy that you can file for and only Best Bankruptcy Law offices in Danville VA can help you determine which type of bankruptcy will be the best choice. The most common types of bankruptcy filed are Chapter 7, Chapter 11 and Chapter 13.
Chapter 7 is commonly referred to as liquidation bankruptcy, which can help give you a fresh start with very little effect on your assets. Even though there could be very little effect on your assets, you may end up losing some of them.
Chapter 11 is a type of re-organization bankruptcy and is typically best for larger businesses and investors. The business’s creditors usually agree to a certain repayment plan
Chapter 13 is designed to help the creditor develop a more reasonable repayment plan so they can eventually get back on financial track.
It is always best to speak with an experience law office to determine if bankruptcy is even a good option for you.
Not matter which option you choose, the stain of bankruptcy will not last forever and you can always set up a free consultation with Law Offices of Stephen E. Dunn, PLLC to find which option will work best for your particular situation.
