If you own or operate a business, and you are struggling to pay your bills, you may be considering a personal or business bankruptcy petition. You may be uncertain of the options available to you, and whether your interests will best be served by a consumer or commercial bankruptcy. This blog post identifies the different options in personal and business bankruptcy filings.

At the office of bankruptcy attorney Carrie Weir , in Rockwall, Texas, I provide a free initial consultation to anyone considering filing for bankruptcy. For a private meeting, contact my office online or call me at 972-772-3083 to set up an appointment.

An Overview of Consumer Bankruptcy Options

When seeking to put your personal finances in order, you can file for protection under Chapter 7 or Chapter 13 . In a Chapter 7 personal bankruptcy filing, you are allowed to permanently rid yourself of certain debts in exchange for the sale of some of your property. As a general rule, only unsecured debt, such as credit card bills and medical expenses, can be discharged in a Chapter 7 proceeding. You can, however, keep certain value in your home, car, retirement plans and other personal property.

In a Chapter 13 petition, you enter into new payment agreements with your creditors, agreeing to satisfy your debts over a three-to-five year period. You are allowed to keep all of your property, and can enter into repayment arrangements with respect to almost any type of debt.

In both Chapter 7 and Chapter 13 proceedings, you get the immediate benefit of the automatic stay. Your creditors may not call or write you, and must suspend any pending legal action to collect the debt.

Commercial Bankruptcy

You can file a Chapter 7 bankruptcy petition with respect to your business, but if you do, you must liquidate the assets of your business. If you want to continue business operations, the best option for commercial bankruptcy is under Chapter 11, the business equivalent to a Chapter 13. In a Chapter 11 proceeding, your lawyer will work directly with your creditors, seeking to put together a reorganization plan that meets their approval. Your attorney will also evaluate repayment offers from your creditors, to make certain they are within your means. If you make agreements under Chapter 11 or Chapter 13 and fail to keep them, you can lose the protection of the automatic stay.

In business bankruptcy filings, you also get the benefit of the automatic stay.

Contact Texas Bankruptcy Attorney Carrie Weir

I offer a free initial consultation to all potential bankruptcy clients. Contact my office by e-mail or call me at 972-772-3083 for a private meeting. With offices in Rockwall, Texas, I represent clients in Heath, Greenville, Lavon, Wylie, Mesquite and Rowlett.

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Call Rockwall bankruptcy lawyer Carrie Weir at 972-772-3083 or fill out the contact from below for a free, confidential consultation to discuss your options.

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