Reorganization vs. Liquidation
Many people are intimidated by the thought of filing for bankruptcy. The reality, though, is that bankruptcy can actually be a means towards a brighter and more secure financial future with the help of an experienced attorney. Depending on your circumstances, you may either choose to file for bankruptcy in a form that may be classified as “reorganization” or “liquidation”. The requirements and advantages of each vary considerably and a knowledgeable bankruptcy lawyer can help to ensure that you fully understand your options before moving forward.
If you are facing bankruptcy, the help of an experienced and trusted legal representative can be invaluable. The knowledgeable Cedar Rapids bankruptcy attorneys of Hong Law, PLC, have years of experience helping people to resolve their debts through bankruptcy. To discuss your situation, contact us at (319) 294-5853 today.
Types of Bankruptcy
The following offers some basic insight into the different types of bankruptcy:
- Reorganization – Chapter 11, 12, and 13 are all considered forms of “reorganization” bankruptcy. Filing under these chapters allows for the restructuring of payment terms with one’s creditors. The resulting payment plans, typically 3-5 years in length, allow the debtor to continue to make payments without facing additional jeopardy. Chapter 13 is available for individuals, and Chapter 11 is available for businesses. Chapter 12 exists to protect businesses of a specific nature (i.e., small farms, ranches, and fishing operations).
- Liquidation – Chapter 7 bankruptcy is commonly referred to as “liquidation”. In principle, the idea is that a debtor will expose certain non-essential items to bankruptcy sale. The proceeds generated by this sale will then be divided and distributed to creditors, thereby satisfying the debt even if no payment is received. In practice, it is usually possible to retain most or all of one’s property.
To learn more about the options that are available to you as you seek to overcome an overwhelming debt load, contact the Cedar Rapids bankruptcy lawyers of Hong Law, PLC. Call us at (319) 294-5853.
Coralville, IA 52241
Phone: (319) 354-1804
Map to our Coralville Office