Bankruptcy laws are complicated. To make matters worse, a great deal of speculation, rumor, and misinformation surround the process of filing a Bankruptcy claim.
To help provide clarity—and assist those who may be considering filing for Bankruptcy—Caddell Reynolds has recently published an educational infographic.
This useful reference dispels the myths about Bankruptcy—including the long-held misconception that it is a sign of financial failure—and that those who file will be financially ruined forever. In fact, a Bankruptcy filing can take many forms, including:
- Chapter 7: This type of Bankruptcy will relieve filers of most of their debts with a few exceptions—including taxes, some student loans, and domestic support obligations such as alimony or child support.
- Chapter 11: This type of Bankruptcy is a way for viable businesses to secure additional time to meet their debt obligations—and to reorganize debts and contracts under the supervision of the Bankruptcy Court.
- Chapter 12: This type of Bankruptcy is designed for family farmers and family fishermen with a seasonal income structure. It may also include individuals who—in their ordinary course of business—cut timber.
- Chapter 13: This type of Bankruptcy is for those with enough income to continue making payments who have fallen behind. It provides a chance to reorganize debts over time—and may see debts discharged.
Caddell Reynolds hopes the real facts will help potential filers better understand their options—and offers advice to help those who have already filed get back on track more quickly, including:
- Control Your Spending Wisely: If you do not control your personal and household spending carefully, you could end up right where you started.
- Open a Low-Limit Credit Card: Even in the middle of a Bankruptcy, it can be easier than you might think to obtain a low-limit, secured credit card.
- Make Credit Payments On Time: Making timely payments is vital to rebuilding credit history, while missing payments will dig the hole deeper.
We Can Help.
Caddell Reynolds will be by your side every step of the way. Call us for your Free Legal Consultation at (800) 889-6944 today. We have offices conveniently located throughout Arkansas to better serve you.
Caddell Reynolds. Make the right call!