Monroe Personal and Business Bankruptcy

The most common types of bankruptcy are Chapter 7, Chapter 11 and Chapter 13. While all three are available to both individuals and businesses, you should speak with a lawyer for advice before filing bankruptcy in Monroe. What follows is a summary of personal and business bankruptcy.

Personal bankruptcy in Monroe

The most common types of personal bankruptcy are Chapter 7 and Chapter 13. As soon as you file for either, an automatic stay stops all lawsuits, wage garnishment, and most other creditor collection efforts against your property.

  • Chapter 7: Individuals who pursue Chapter 7 bankruptcy in Monroe ask a court to discharge the debt they owe. A bankruptcy trustee liquidates a person’s non-exempt property and uses the proceeds to pay off creditors.
  • Chapter 13: Also known as reorganization bankruptcy, Chapter 13 bankruptcy is designed for individuals who do not want to lose their property. Instead of liquidating your property, a court helps you devise a plan to repay some or all of your debts to creditors over a span of three to five years.

Business bankruptcy in Monroe

All businesses may file for Chapter 7 bankruptcy and some small businesses are eligible to file for Chapter 13 bankruptcy in Monroe. Most often, corporations, sole proprietorships and partnership choose to file for Chapter 11 bankruptcy.

  • Chapter 11: Also known as B2B bankruptcy, Chapter 11 is a complex and expensive form of bankruptcy typically chosen by large businesses that want to work out debt problems. B2B bankruptcy helps a business reorganize and restructure their debt while still operating, although it must do so under the supervision of a bankruptcy court.

Compassionate bankruptcy help in Monroe

If you are an individual or business in Monroe facing spiraling debt problems, Harrod & Harrod can help. Our law firm combines over 50 years of legal experience with concern and compassion for clients. If creditors are conducting wage garnishment, threatening to sue, or harassing you for payment, we will go over your case and work out the best way to stop these intrusions. If you decide to file for bankruptcy, our lawyers will be there for you every step of the way. To speak with an experienced bankruptcy lawyer in Monroe, contact us today.