Bankruptcy is not a universal act or law with identical conditions for everyone. However, every chapter of bankruptcy law has something different to offer as per varying business and credit situations. If you are also confused between chapter 7, chapter 11, or chapter 13 of bankruptcy, then the following guide can be highly assistive for you.
Chapter 7 bankruptcy can be the best fit for you if your terms and relations with your credits were not much worse, and your business is failing to succeed. With this, you will wipe your debt slate clean by giving you relief from your debts. Though you might lose your company with it, the one that is already failing, yet it will help you to get rid of creditors too. In case you do not have any partner in your business, then your credit rating will not take much time to improve, and above that, you might be able to save a few of your assets.
Chapter 11 or 13
Contrary to this, if you will have to fight with your creditors for clearing your debt, you should go either for Chapter 11 or Chapter 13 bankruptcy. With this, you can keep your hold on your business, but the court will help you with such a settlement where paying debts will be an effortless task. If you own an incorporated business, then you will have to file under Chapter 11 bankruptcy. However, Chapter 13 bankruptcy is for those who own sole proprietorships. In both cases, you will get a new repayment plan that will not be as burdensome as before.
Keep your unsecured and secured debts in mind and choose the right chapter to minimize the loss and protect your assets. If you do this way, bankruptcy can be a boon for you indeed.
Contact a Plano bankruptcy attorney to discuss the best options for your situation.