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Bankruptcy Basics

What is Bankruptcy?

Bankruptcy is a legal process where a debtor reorganizes debt through the division of assets. Different possibilities for debtors in filing for bankruptcy vary depending upon each situation. Bankruptcy allows you to eliminate debt or repay creditors over time without penalties. Filing for bankruptcy shields individuals from future creditor attacks and protects assets.

Who can qualify for bankruptcy?

Bankruptcy can be filed by an individual or a business. There are varying levels of financial hardship for those filing for bankruptcy.  However, most people can qualify for filing either Chapter 7 or Chapter 13 bankruptcy. Over one million people a year file for bankruptcy, including business owners and high income earners who are looking to alleviate their debt while holding on to other assets. What are the different types of bankruptcy? The most commonly filed forms of bankruptcy are Chapter 7 and Chapter 13. The major difference between Chapter 7 and Chapter 13 is the choice to pay back money over time. If you have overwhelming amounts of debt and extenuating circumstances such as loss of job or illness and wish to eliminate your debt overall, you may consider Chapter 7. If you have a steady income but are being weighed down by debt, you may choose to file Chapter 13 bankruptcy and pay back your debt over time. Click these links to learn more about Chapter 7  and Chapter 13 bankruptcy. If you are a business-owner looking to file for bankruptcy, Chapter 11 bankruptcy allows business to file for bankruptcy due to creditor and supplier debt. Chapter 11 can also be filed by high net worth individuals. How do I file for bankruptcy? After contacting Citizens Law Group LTD. and consulting with one of our experienced bankruptcy attorneys, we will recommend which form of bankruptcy is best for your case. Prior to filing, you must first complete a credit counseling class. Once completed, the attorneys at Citizens Law Group LTD. will work with you to complete and assemble all the paperwork necessary for filing with the bankruptcy court. We will help you through each step of the process, assuring each step is done with high quality service. Contact Citizens Law Group LTD. today to speak to one of our expert bankruptcy attorneys.