Credit is king in the modern age. It can affect your ability to borrow funds, invest in real estate, and whether or not you can add that fancy credit card to your wallet. Sometimes a credit burden can become overwhelming. When debt accumulates to the point where you have no other choice but to file for bankruptcy, the biggest question is often: what happens now?
Bankruptcy happens, and when it does, it’s not the end of the world, even though we know it can feel that way. An experienced bankruptcy lawyer can help you navigate the challenges that come with bankruptcy—before, during, and after the process. Here’s what you can expect once you file for bankruptcy.
Understanding Different Types of Bankruptcy
Before delving deeper into the post-bankruptcy process, it’s important to understand what kind of bankruptcy petition you’re filing. The most common kinds of bankruptcy, which you’re likely to file for as a business or individual, include Chapter 7 and Chapter 13.
Here are the key differences between Chapter 13, Chapter 11, and Chapter 7 bankruptcies:
- May have to liquidate assets like cars or property
- Little or no disposable income
- Most assets are exempt, but commonly, liquidation is inevitable
- Liquidation may not be necessary
- Required to pay off debts in a determined period, typically between three and five years
- Keep most assets
- Stricter approval requirements than Chapter 7
- Secure debts can’t exceed approximately $1,500,000, while unsecured can’t exceed $383,000
Chapter 11 Bankruptcy
- For businesses
- Companies can continue to run, albeit while paying off debt
- Assets are maintained, no liquidation necessary
Businesses can also file for Chapter 7, but for the most part, businesses will try to file for Chapter 11 if possible. Individuals or non-business entities typically file for Chapter 7 and Chapter 13. Regardless of which kind of bankruptcy you file for, the process tends to be pretty similar.
Once you file, bankruptcy doesn’t operate like a “Get Out of Jail Free Card” for your debt. Instead, it advises creditors that either you cannot pay the debt, or you’re able to pay the debt off in a predetermined amount of time. Once filed, there is a stay of credit placed on your debts. When this happens, it bars creditors from garnishing your wages, collecting debt, or attempting to collect from your secured assets.
There are a few other procedures that commonly take place after you file for divorce, and a crucial one is hiring an experienced Louisiana bankruptcy lawyer to help you escape from debt once and for all.
Battle Debt With a Louisiana Bankruptcy Lawyer
Bankruptcy isn’t always easy, but we can help make it easier for you. Whether you’ve already filed or are looking to file, let us give you peace of mind when it comes to your bankruptcy needs. It’s time to reach out to the Louisiana bankruptcy attorneys at the Law Offices of E. Orum Young. We’ve helped our clients overcome debt and work through bankruptcy for 35 years and counting. Let us fight for the compensation you and your loved ones deserve.
It all starts with a free consultation and case review with one of our qualified accident attorneys. Give us a call 24/7 at (318) 814-9352 or complete our online contact form.