Monroe Bankruptcy
Bankruptcy is legal protection from debts that you are unable to pay. Either a business or an individual can declare bankruptcy upon reaching a financial state where it is no longer possible to pay off creditors. Bankruptcy essentially gives that person or business a chance to start over financially, as a bankruptcy filing relieves most debts.
Filing for bankruptcy is not something to be ashamed of. While it will negatively impact your credit history, this impact is temporary. Bankruptcy in Monroe, Louisiana, can be an excellent legal means to get a fresh start from financial burdens that may not be entirely your fault.
Types of bankruptcies
The types of bankruptcy include the following:
- Personal bankruptcies involve an individual who is unable to repay his or her creditors.
- Business bankruptcies also excuse bad debt, but for a legal corporation or entity, rather than an individual.
Each type of bankruptcy helps a business or individual relieve debt, but in different ways.
Chapter 7
Chapter 7 is a simple form of bankruptcy that can generally be used by any individual or business. In this type of bankruptcy, all unsecured debts are expunged, or paid off if the bankrupt party has any remaining money once secured creditors are paid. The law allows various exemptions, meaning that the bankrupt party retains some property in order to help make a fresh start.
Chapter 13
Chapter 13 bankruptcy is commonly used by individuals and small businesses. It delays and reduces the amount of money paid to creditors and establishes a court-approved timeframe over which those payments are to be made. This is known as a Chapter 13 plan or individual reorganization.
Chapter 11
Chapter 11 is similar to Chapter 13 and is normally used by larger businesses. It has more stringent legal requirements than Chapter 13. If all you need is a plan to pay off debt, Chapter 11 or 13 bankruptcies are normally preferable to Chapter 7.
Only an experienced bankruptcy attorney can provide advice about which form of bankruptcy in Monroe is right for your particular situation.
Monroe bankruptcy services
Debt is a fact of life, and when it becomes unmanageable you have nothing to be ashamed of.
Attorney E. Orum Young will help you work out your debts confidentially. If you need advice from a Monroe bankruptcy lawyer, please contact us, the bankruptcy law firm of E. Orum Young Law Offices.

