Bankruptcy — Xenia Dayton

Making the decision to file for bankruptcy is often difficult. Many of us feel we somehow failed. But the truth is, if you are struggling to pay debts and bills and you are not making headway, it may be time to consider getting a fresh start.

Bankruptcy is not a decision to be taken lightly. At Ferguson Legal Group, LTD, we counsel clients to ensure that they are in a financial position where filing for bankruptcy is their best remaining option. If you are facing foreclosure on your home, garnishment of your wages, or repossession of your car or other items, filing for bankruptcy may work for you.

What is Bankruptcy?

There are many types of bankruptcy. At Ferguson Legal Group, LTD, we help clients with three types of personal bankruptcy. These are:

• Chapter 7 bankruptcy: This is also known as liquidation. When you file for Chapter 7 bankruptcy with the court, you will use what you currently have to pay off all the debts you can. Some of your property is “exempt” and will not be used to pay off creditors. A trustee oversees this process. Then the slate is wiped clean. You do not create a repayment plan.
• Chapter 11 bankruptcy: Also called reorganization and commonly used by businesses but also available to individuals. When you file with the courts, you “reorganize” your business according to a plan that seeks to pay back creditors over time.
• Chapter 13 bankruptcy: Also known as the wage earner’s plan, this type of bankruptcy is designed for people who have fallen far behind in their debt payments but who earn enough that, with careful planning and negotiation, they should be able to repay all or part of their debts over an extended period (typically 3 to 5 years). A trustee works with the creditors and handles the repayment. Filing stops creditors, foreclosure, and all collection attempts.

If you are struggling and suffering because of overwhelming debt, it may be to your advantage to speak with our bankruptcy attorney about your situation. You will then understand your options and determine whether filing for a Chapter 7, 11, or 13 bankruptcy will put you and your family in a better financial position.