Everyone goes through hard times, including both people and businesses.  Sometimes, financial circumstances become so difficult that you have to consider filing bankruptcy.

If you believe filing bankruptcy is the best option available, do be aware that there are differences between filing a personal and a business bankruptcy:

Psychological Consequences – The primary difference is most often a psychological one. Personal bankruptcy tends to make people feel as though they personally have failed.  Business bankruptcy is more of a strategic choice, and while stressful, doesn’t carry the negative stigma that personal bankruptcy does.

Material Consequences – Personal bankruptcy has much harsher consequences. If you personally have no money, you may not be able to afford payments on your house, for example.  Personal bankruptcy doesn’t have anything to do with your mortgage explicitly, but because your money is tied up with creditors or gone entirely, you may have difficulty paying for life’s basic necessities.  With business bankruptcy, you can reorganize your assets so you can pay off your creditors.

Depending on whether you are a person or business, you can file different types of bankruptcy.  The process contains a number of legal complexities, however, so having the help of one of Schiller Law Group’s bankruptcy lawyers in New York may prove beneficial.  Types of personal bankruptcy you can file include:

Chapter 7 – In this type of bankruptcy, you are stating you do not have the ability to repay the debt you have accumulated. In chapter 7 bankruptcy, some property is exempted from creditors repossessing and selling it.  Types of debt you can discharge include medical bills, credit card charges, personal loans, utility bills, and attorney fees.

Chapter 13 – In Chapter 13 bankruptcy, you make an attempt to repay your creditors. In most cases, you’ll pay back just a small portion of your debt.  Our bankruptcy lawyers in New York will negotiate a 36 – 60 month repayment plan on your behalf.