Delaware Bankruptcy Facts
Are you struggling with large amounts of debt from unpaid credit card bills in Delaware? Are creditors calling you around the clock asking for payment? Are you in danger of losing your home to foreclosure? If so, then the time to act is now. Nearly everyone in Delaware has suffered from debt at one point or other, but you don’t have to stay stuck in the same financial rut for much longer. If your debts have reached the point where they have become unmanageable, bankruptcy protection may be the solution you’ve been waiting for.
What is Bankruptcy?
Bankruptcy is a federal process that involves a debtor (individual or business) declaring their inability to pay off what they owe to creditors. There are a number of different bankruptcy petitions that can be filed in Delaware, but each one caters to specific kinds of debt and may not all work out for you. In order to ensure the best outcome for your case is attained, it is wise to consult with an experienced Delaware bankruptcy lawyer, who will take care of all your paperwork, review your finances thoroughly and make all the necessary court appearances on your behalf so you won’t ever feel stressed during proceedings.
But before you consult with a bankruptcy attorney, it’s important that you understand the basics of bankruptcy to gain a good idea of what is expected from each petition. Below are some important facts regarding bankruptcy laws in Delaware to help you determine which petition best suits your financial situation and future goals.
Most Commonly Filed Bankruptcy Petitions in Delaware
While there are several chapters of the U.S. Bankruptcy Code that may be filed by both Delaware residents and businesses, the two most commonly sought are Chapters 7 and 13. Chapter 7 is also known as “liquidation bankruptcy” because a petitioner’s assets are liquidated in exchange for the elimination of their debt. The other popular choice for debtors in Delaware is Chapter 13 bankruptcy, which is often referred to as “reorganization bankruptcy” because it allows for debtors to be placed on a payment plan to reimburse creditors.
Each chapter has its set of pros and cons, so it’s important that you seek legal counsel when filing for any chapter so you won’t end up with more debt that you started with. For example, Chapter 7 is a popular choice because it provides debtors in Delaware with a clean slate when it comes to finances. Although some people are put off by the idea of liquidating their assets, there are several exemptions to the rule, including the debtor’s home, clothing, heirlooms, and retirement accounts, that will not be put up for creditor seizure. Chapter 7 bankruptcy protection also appealing because both individuals and businesses can apply and if approved, can emerge from proceedings within a few short months.
Conversely, Chapter 13 cases can take up to 5 years to resolve, but debtors will never have to worry about being ordered to liquidate their assets. However, debts will never be fully eliminated, as can happen with Chapter 7 bankruptcy filings.
Maximizing Your Debt Relief with Delaware Bankruptcy Attorneys
It’s not easy to make the choice between filing for Chapter 7 liquidation bankruptcy or Chapter 13 reorganization bankruptcy, but Delaware bankruptcy attorneys can make that decision much easier. When you have an experienced legal representative on you case, you can rest easy knowing that your finances are in good hands.
Bankruptcy lawyers in Delaware work diligently to help you achieve the maximum debt relief possible by analyzing your income and liabilities, determining all the chapters you qualify for, and handling all the paperwork and court appearances so you won’t ever have to feel stressed or worried during proceedings.
Regardless of how much you owe creditors or why, a bankruptcy lawyer in Delaware who has the skills to help you overcome your debts is available right now to protect your rights. Contact one of our featured attorneys today and be on your way to eliminating your financial burdens for good.