Simply put, bankruptcy is the legal status placed on businesses and individuals who are unable to pay off some or most of their debt. In rare cases, filers are unable to pay-down ANY of their debt. Bankruptcy legally absolves debtors off the stress of owing more than they can pay. It was no surprise that in the United States in the last ten years, the rate of bankruptcy cases skyrocketed, as the recession has left thousands, if not millions, of Americans unable to pay towards their debt. For those who call Fall River, MA home, they face the same harsh reality. However, as the rate increased, the laws and criteria was changed slightly to reflect the growing number of cases.
In Fall River, Massachusetts, and most of America, the most prevalent types of cases are Chapter 7 bankruptcy and Chapter 13 bankruptcy. A well-versed bankruptcy lawyer, such as the Law Office of Brian R. Lewis, can guide debtors through the often-lengthy yet surprisingly simple process of filing for bankruptcy protection. It is important to gather all pertinent information and questions so that the right recommendations and strategies can be made.
Also known as the “wage-earner” filing, Chapter 13 bankruptcy offers debtors the chance at a rehabilitation of their accrued debts. This enables businesses or individuals to forgo a restructuring of their finances, and instead offers them a chance to make payment against outstanding loans and liens, usually for a length of 3 to 5 years This is especially beneficial for those who do not want to see their non-secured property and belongings seized and sold, as in the case with Chapter 7 filing.
Chapter 13 has been known to save foreclosed homes, though unless the debt is taken care of in a timely manner after filing, banks or lien holders can begin the foreclosure process all over again once the bankruptcy is complete. It does buy time for home-owners to either look into saving the home, or moving it onto the market. In some case, Chapter 13 filers are able to utilize what is known as value collateral; estimating value of property in order to receive lowered, or abolished, interest rates.
Chapter 7 bankruptcy, termed ‘straight’ due to the simplicity of the process, is reserved for debtors who do not have the ability to pay back outstanding debt, and are looking for complete relief of any and all of their debt. The process involves a liquidation of the non-secured assets, with the proceeds pooled and used to pay back the creditors. To avoid liquidation of some property, Chapter 7 cases can also opt for redemption or reaffirmation, which include either making affordable monthly payments, or paying down a lump-sum on the debt. This could stop the liquidation of some non-secured property.
\Whether you are seeking a business bankruptcy or a personal bankruptcy in Fall River, MA, there are several options available. Many filer are often surprised by how quick and simple the process could really be, and how the ‘stigma’ associated with filing a bankruptcy case are really not accurate at all. Contact an experienced bankruptcy attorney to discuss all of your options, such as the Law Office of Brian R. Lewis.
