Declaring bankruptcy is increasingly common in these tough economic times. If you find yourself overwhelmed by debt, experienced attorney Denise Brown can help you make a fresh start by filing for bankruptcy in Shelbyville. Additionally, Ms. Brown can assess your case and determine if alternatives to bankruptcy are viable.

Below is a list of the different forms of bankruptcy:

• Chapter 7: Also called liquidation bankruptcy, this is the most common form of eliminating debts. Essentially, Chapter 7 bankruptcy wipes the slate clean of debt and gives you a fresh start. Shelbyville bankruptcy attorneys can explain in detail how Chapter 7 immediately wipes out any debts you have. However, Chapter 7 liquidates assets in order to pay back creditors. This form of bankruptcy is most suited for people who have a large amount of debt, and inconsistent or no income.

• Chapter 11: Corporations seeking to reorganize debt typically use Chapter 11 bankruptcy. Unlike Chapter 13, there is no limit on the amount of debt. The company or individual in debt operates business as usual while simultaneously paying back creditors. If the debtor is incompetent or dishonest, a trustee oversees the management of the debt reorganization process.

• Chapter 13: This type of bankruptcy is most suited for people who have a steady income or have a moral obligation to pay back their debts. Chapter 13 allows a debtor to repay his or her debts in a period of approximately five years. Unlike Chapter 7, Chapter 13 does not liquidate any of your assets.

How can an attorney help?

A skilled lawyer can greatly reduce the stress and frustration caused by debt. He or she can help you become more financially responsible by recommending a trustworthy credit-counseling agency. An attorney can stop harassing phone calls and negotiate with creditors. Federal debt protection law prevents creditors from abusing debtors regardless of the amount of debt you owe. Your Shelbyville bankruptcy lawyers can also explain that if you have some income, you may be better off negotiating with creditors.

Contact us

Denise Brown’s Legal Direction provides clients with experienced legal aid. Furthermore, we understand the frustration debt can cause for you and your family. We have extensive knowledge in all areas of bankruptcy law. For more information on how we can help you, contact us today online or call us at 502-587-0331.