3 Things To Know About Bankruptcy According To The DOJ
What do you need to know if you are considering bankruptcy? From the start, you should recognize that bankruptcy law in the U.S. is extremely complex, and you will not be able to learn everything you need to know about bankruptcy in one reading. However, there are some key things you should know about bankruptcy when you are just getting started and are considering the possibility of filing for bankruptcy. What issues or facets of the bankruptcy process are most important? The U.S. Department of Justice (DOJ) identifies three key issues or areas of bankruptcy law that everyone should understand. Our West Palm Beach bankruptcy attorneys will break them down for you.
When Considering Bankruptcy Chapters, You Will Need to Think About Your Eligibility and the Type of Bankruptcy Best Suited to Your Needs
When you are considering bankruptcy, you need to think about two different things: your eligibility or qualifications for different types of bankruptcy, and the type of bankruptcy that is best suited to your needs based on what the bankruptcy can do.
If you are considering a business bankruptcy, you should be looking at Chapter 11 bankruptcy and Chapter 7 bankruptcy based on your aims (whether you want to keep your business open and running, for example), and in some cases Chapter 12 bankruptcy if you qualify. As an individual, you should be looking largely at Chapter 13 bankruptcy and Chapter 7 bankruptcy, although you may need to consider Chapter 11 bankruptcy if your debts are too high to qualify for Chapter 13.
When Considering Bankruptcy in General, Understand How Discharges Work
Before you file for bankruptcy, you will want to determine whether your debts can be discharged or eliminated, depending on whether you are an individual or a business. A bankruptcy discharge means that you are no longer responsible for your debts. Many types of debts are dischargeable in a personal bankruptcy case, but some are not. Businesses in general do not receive a “discharge” at the end of a Chapter 7 case because the business closes, and there is no longer an entity for creditors to pursue for debts.
Know What a Reaffirmation Agreement is and How It Could Affect Your Case
Reaffirmation agreements are agreements that a debtor can sign to agree to continue to have responsibility for a dischargeable debt at the end of a bankruptcy case. In this type of agreement, the debtor reaffirms that they owe the debt. These agreements typically occur when a debtor has a debt that has been co-signed, or when there is a secured debt and the debtor wants to keep the property (such as a motor vehicle).
Contact an Experienced West Palm Beach Bankruptcy Lawyer Today
The key things to know about bankruptcy that the DOJ points out are just some of the important aspects of a bankruptcy case. If you are planning to file for bankruptcy in South Florida, it is critical to get in touch with a bankruptcy lawyer who can help you to determine your eligibility for particular types of bankruptcy and to work with you from start to finish to ensure that your bankruptcy case goes as smoothly as possible. Our experienced West Palm Beach bankruptcy lawyers at Kelley, Fulton, Kaplan & Eller represent businesses and individuals alike in bankruptcy cases, and we can speak with you today.