Tinley Park Bankruptcy Attorney
Tinley Park Bankruptcy Attorney
Although most people have heard of bankruptcy, few are aware of what the filing process really entails. For instance, while filing for some forms of bankruptcy allows families, individuals, and businesses who can not meet their financial obligations to be excused from re-paying all of their debt, not all forms of bankruptcy do so. To ensure that filing for bankruptcy is right for you, please contact an experienced Tinley Park bankruptcy attorney who can walk you through your legal options.
Types of Bankruptcy
There are two main types of bankruptcy, which are known as:
- Liquidation bankruptcy, which allows filers to surrender their property to pay off their creditors, in return for which, all of their debts will be discharged; and
- Reorganization bankruptcy, which allows filers to keep their property, although they are also required to agree to an installment plan in order to repay creditors for part of the amount that they owe.
Within these categories, there are also different types of bankruptcy proceedings, including:
- Chapter 7 bankruptcy, which is a type of liquidation bankruptcy, in which the filers must turn over their non-exempt property to a supervising trustee who then sells that property and uses it to pay off part of their debt, the rest of which is forgiven; and
- Chapter 13 bankruptcy which is a type of reorganization bankruptcy that allows filers to keep their assets in exchange for agreeing to make monthly payments to pay off their debt over the course of three to five years.
Businesses that are in financial straits often choose to file for Chapter 11 bankruptcy, which allows companies to reorganize their debts, but to continue operating after those debts have been resolved. This is a popular option for corporations, partnerships, and limited liability companies, which are not permitted to file for Chapter 13 bankruptcy. While it is also possible for individuals to file under Chapter 11, many choose to forego doing so because the process tends to be more complex than filing for Chapter 7 or Chapter 13.
Filing for bankruptcy is not an option that is available to everyone. For example, those who have had their debts forgiven under Chapter 7 within the last eight years are not permitted to refile, while those who file for Chapter 13 bankruptcy must wait another six years before doing so again. Further, those with too much disposable income will be barred from filing for a liquidation bankruptcy, although they may still be permitted to file for reorganization.
Call Today to Speak with a Dedicated Tinley Park Bankruptcy Attorney
Regardless of the chapter of the bankruptcy code that a person chooses to file under, he or she will be required to comply with a wide range of federal laws and regulations. Making any errors during this process can have devastating consequences, as the court can choose to refuse to discharge the filer’s liabilities. With so much at stake, hiring a licensed bankruptcy attorney is one of the best ways that a person can ensure that his or her bankruptcy proceedings go as smoothly as possible. To learn more about your legal options, please contact our experienced Tinley Park bankruptcy legal team at Forst Law Offices by calling (708) 873-1623 today.
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