Though it is a common misconception, opting for bankruptcy does not mean that the filer will lose his or her home, that the filer will be fired, or that bankruptcy will clear all debts. These are the top three misconceptions when anyone hears of this action. Instead of these actions, filing gives a relative peace of mind to the filer who will no longer have to worry about being harassed by creditors. Besides peace of mind, filing allows people to work out a detailed, long term plan that goes toward paying off their debt in a budgeted manner.
There are several types of bankruptcy which are divided by chapter: 7, 11, 12, and 13. Any bankruptcy law firm, Cedar Rapids and elsewhere, will possess the same information regarding each chapter, though state laws may differ. Chapter 7 is called liquidation bankruptcy in which the filer is allowed to keep his or her house, retirement plants, goods, furniture, and clothing. Chapter 11 allows filers to reorganize their debt and is often used by large businesses and corporations. Chapter 12 bankruptcy is specific to farmers who wish to restructure their debt to continue the farming life. Chapter 13 is classified as repayment bankruptcy which allows a portion of the money owed to creditors to come from the wages earned.
Because of the many types of bankruptcy, bankruptcy law firm Cedar Rapids can help immensely when filing a claim. These firms will teach clients the basics about this action and answer any relevant questions. One major bankruptcy law firm Cedar Rapids is run by the Law Offices of Kevin Ahrenholz, a specialist in bankruptcy.
This form works with clients to provide strategic legal counsel for the best method and financial management plan available. Any bankruptcy law firm Cedar Rapids, and elsewhere, can help clients avoid foreclosure on their homes, stop vehicle possession, eliminate medical bills, and discharge immense credit card debt. Though the benefits of bankruptcy seem to outweigh the negatives, it is a serious consideration that should not be answered blindly. These legal counselors will answer all questions and help their clients arrive at the best possible solution for the present and future.