There were more than 1.2 million bankruptcy cases filed in 2012, and millions more Americans are facing mounting debt problems. The prospect of bankruptcy is overwhelming to many of the clients we work with. The process is complex and often requires a skilled attorney in order to achieve the best outcome.
What is Bankruptcy?
Modern bankruptcy laws have their roots in the Old Testament, which calls for the cancellation and forgiveness of all debts every seven years. Today’s uniform laws for bankruptcy are a granted power of Congress outlined in the U.S. Constitution. Bankruptcy is not a new concept, and is a route that many individuals have faced throughout the years.
Bankruptcy provides individuals and businesses with the opportunity to restructure, reduce or possibly eliminate debt by going through the Chapter 7, Chapter 11 or Chapter 13 process. Bankruptcy is typically used as a last resort for businesses and individuals who have become severely indebted and are unable to live up to their legal obligation to resolve their debt.
Many people view bankruptcy as a “fresh start,” but it does come with consequences. Working with an attorney will make it easier for you to understand the entire process. We believe in providing clients with all the information needed so they can make the best decisions for themselves, their family or their business.
Bankruptcy Options for Individuals near Cleveland
Chapter 7 – This version of bankruptcy allows you to have the majority of your debts discharged, but many of your personal belongings could be liquidated in order to give some restitution to your creditors.
Chapter 13 – If you are only temporarily unable to pay your debt, Chapter 13 might be an option for you. This will give you an opportunity to restructure your debt so that it is easier to pay off.
Bankruptcy Options for Businesses near Cleveland
Chapter 11 – This is the most common course of action for any business that has a viable plan for future recovery.
Chapter 7 and Chapter 13 – Although both of these forms of bankruptcy are used more commonly by individuals, they can be appropriate business options in some cases, especially for a sole proprietorship or small company.
Is Bankruptcy the Right Option for you?
Ultimately, the best way to make a solid decision regarding bankruptcy is to work with an experienced lawyer. Keep in mind that filling out the necessary paperwork on your own can be very confusing. We can help take care of everything properly, while also ensuring that all of your rights are protected so that you can have a better future.
If you are facing serious financial problems, contact us for a no-obligation bankruptcy consultation at 216-661-9740.