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Types of Bankruptcy

Powerful Solutions to Serious Debt Problems

Bankruptcy is not for everyone, but it is tremendously helpful for some people who are overwhelmed with debt. While a bankruptcy filing is not without drawbacks, the benefits can be huge. If you are struggling with excessive debt, if you are being harassed by collectors or if you are facing foreclosure, wage garnishment or vehicle repossession, it is important to know your options. Contact us for a free consultation.

Our attorneys can analyze your debt and your assets and explain possible choices for relief from the pressure and creditor harassment that you may be facing. You may qualify for one of the following types of bankruptcy:

Chapter 7 Bankruptcy: A Fresh Start When the Burden of Debt Is Too Heavy

Chapter 7 bankruptcy is designed for people who do not have enough assets and income to pay off debts like credit cards, loans and medical bills. For those who qualify, the benefits of Chapter 7 can be life changing: Debts are discharged, payments are no longer required, and creditors and collectors are forbidden to call the debtor. Filers of Chapter 7 bankruptcy must meet income guidelines. In most cases, filers have to give up assets that will be used to pay off their creditors.

Chapter 13 Bankruptcy: A Payment Plan That Can Get Things Back on Track

In some situations in which a person has consistent income and has some ability to make debt payments, a Chapter 13 bankruptcy can be helpful. In a Chapter 13, an individual works out an affordable payment plan, which is supervised by a court-appointed trustee. Payment plans typically last three to five years and can include back payments on secured debts and unsecured debts like credit cards and personal loans.

Chapter 13 filings are more complicated and more expensive than Chapter 7 filings, but they can help prevent foreclosure and repossession of vehicles, as well as providing other benefits.

Chapter 11 Reorganization: For Businesses and Individuals With High Levels of Debt

Chapter 11 bankruptcy is far less common that Chapters 13 and 7 and can be useful to businesses, corporations and individuals with large amounts of debt. Filing for Chapter 11 can protect a company or individual from creditors while they work to improve their situation.

Chapter 12: Specifically for Farmers or Fishermen

Chapter 12 is specifically designed for "family farmers" or "family fishermen" who engage in farming or commercial fishing. A majority of the filer's recent income and a majority of his or her debt must be related to the farming or fishing operation. Like Chapter 13 filings, Chapter 12 bankruptcies include payment plans.

Gulfport Bankruptcy Lawyers

Sheehan & Johnson, PLLC, helps Mississippi residents with bankruptcy and other legal solutions. Contact us for a free, confidential debt consultation.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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