Options for debt relief are available to consumers through different bankruptcy methods intended to meet the different needs of consumers facing financial challenges. In another part of New York, bankruptcy filings recently increased nearly 10 percent when compared to the same time period one year ago. Bankruptcy filings increased from 161 cases to 177 cases. Chapter 7 bankruptcy filings accounted for 138 of the filings. In addition, 38 Chapter 13 bankruptcy petitions were filed and one Chapter 11 bankruptcy filing was also included in the number of filings.
Chapter 7 and Chapter 13 bankruptcy filings are the most common types of personal bankruptcy filings. Chapter 7 bankruptcy is typically referred to as a liquidation bankruptcy wherein non-exempted assets are sold to create a fund to repay creditors. Chapter 13 bankruptcy, however, allows the filing party to develop a repayment plan to repay creditors over a predetermined period of time.
Experts noted it is too early to determine if the numbers are a signal of a trend towards increased filings. It is important for individuals trying to cope with the stress of financial challenges to understand that legal options for debt relief may be available to them through bankruptcy. Different types of personal bankruptcy are available to consumers to help them in different types of situations. Individuals seeking debt relief who have a reliable source of income may be able to qualify for Chapter 13 debt relief. In other circumstances, Chapter 7 bankruptcy may be the best option.
Individuals seeking a fresh financial start may benefit from familiarity with the different types of personal bankruptcy that are available. Understanding the different types of bankruptcy, and the processes associated with each, may help individuals facing financial challenges enjoy debt relief.
Source: Rochester Business Journal, “Bankruptcy filings in region jump nearly 10 percent,” Will Astor, May 4, 2015