The Top 3 Frequently Asked Questions About Bankruptcy

When people are struggling with debt, they may have no other choice but to declare bankruptcy. Before making any decisions, it's important to understand all your options and the potential consequences of each. The leaders of debt relief aid in Panama City Beach, Lewis & Jurnovoy, will discuss the top three questions people ask about bankruptcy. 

1. What is bankruptcy? 

Bankruptcy is a legal process that allows debtors to have their debts forgiven or discharged. This can be done through a variety of different methods, such as liquidation, reorganization, or debt settlement. In some cases, it may also be possible to negotiate with creditors to reduce the amount of debt owed. 

2. What are the different types of bankruptcy? 

There are six distinct types of bankruptcy, each defined by a chapter. The two most common types are Chapter 7 and Chapter 13. 

Chapter 7, also known as liquidation bankruptcy, is when a debtor's assets are sold to repay their debt. This is typically only an option for those who do not have the means to repay their debt within a reasonable amount of time. 

Chapter 13, on the other hand, is known as reorganization bankruptcy. This type of bankruptcy allows debtors to keep their assets and repay their debt over time through a repayment plan. This option is typically only available to those who have a regular source of income. 

3. How do I file for bankruptcy? 

The process of filing for bankruptcy can be complex, so it's important to seek the guidance of an experienced bankruptcy attorney. They can help you determine which type of bankruptcy is right for you and guide you through the process of filing your petition. 

You will then need to attend a meeting of creditors, where your creditors will have the opportunity to challenge your bankruptcy case. If no one objects, your case will be approved, and you'll be able to begin working towards debt repayment. 

If you're considering bankruptcy, contact the experienced bankruptcy attorneys at Lewis & Jurnovoy today. We can help you understand your options and make the best decision for your financial future. 

 

Lewis and Jurnovoy is a local law office serving the Florida Panhandle. We specialize in bankruptcy law, including Chapter 7 and Chapter 13 bankruptcy. We will work to achieve the best financial remedy for your outstanding debts.

Lewis & Jurnovoy PCB
2714 West 15th St
Panama City, FL 32401
(850) 913-9110
https://www.LewisandJurnovoy.com