Bankruptcy is a legal proceeding by which an individual or business seeks relief from unmanageable debts. The right to file a bankruptcy exists under federal law, and was designed to allow a fresh financial start. Simply put, filing for bankruptcy can deliver protection to those who suffer from substantial debts and face foreclosure on their houses or repossession of their assets.

The attorneys at Sanders Law Firm offer a full range of bankruptcy services for both debtors and creditors. In every matter we take on, we strive to provide our clients the most positive legal outcomes. We understand the anxieties inherent in filing for bankruptcy; it is difficult to allay one’s worries about money. With this in mind, our lawyers work hard to make the process as simple and efficient as possible.

Who Can File For Bankruptcy

In general, any person or business can file for bankruptcy. There is no minimum amount of debt required. However, in most cases, a person who files does owe considerably more in debts than he or she can pay.

It is important, however, to understand the differences between the distinct types of bankruptcy. These include:

• Chapter 7 filings — A Chapter 7 filing is a bankruptcy proceeding which is often the most immediate path toward debt relief. Upon filing, creditors are prohibited from contacting debtors and seeking wage garnishments. These proceedings will tarnish one’s credit rating, but nevertheless enable individuals, in many cases, to keep their houses and other valuable assets.
• Chapter 11 filings — Chapter 11 filings pertain mostly to business and corporations. They entail structural reorganization which usually involves a partnership or corporation. This is a plan to keep the business alive and pay creditors.
• Chapter 13 filings — In most cases, Chapter 13 filings are carried out by individuals or entities with substantial assets that they don’t want to lose. A payment plan will be established wherein debtors pay creditors over a period of three to five years, after which most outstanding debts will be eliminated.

To learn more, reach out to our firm. You can call us at 575-622-5440 or contact us online. We’re here to answer your questions and address your concerns.