While most are aware of the different types of bankruptcy, many people may be less knowledgeable regarding the differences between commercial and personal debt relief. These distinctions can be important, especially if you are a small business owner looking into your options when filing for bankruptcy. Greene Law, PC knows the importance of making an informed decision regarding debt relief. That’s why this firm strives to inform clients all over Connecticut on a range of legal issues, including important financial matters like bankruptcy.

Personal Bankruptcy

In most cases, individuals filing for bankruptcy will opt for either Chapter 7 or Chapter 13. Individuals do have the option of utilizing Chapter 11, but this process tends to be far more complex. Chapter 7 tends to be the better choice for those with minimal income. It is less likely that these people will be able pay off debt while also coping with daily living expenses and necessities.

Conversely, Chapter 13 is best for those who could reasonably pay off debt, but require a manageable payment plan. These plans typically extend for a period of up to five years and can allow debtors to retain essential assets (such as their homes) while also taking care of mounting debt.

Commercial Bankruptcy

Commercial enterprises have some of the same options when it comes to bankruptcy as described above. A business can use Chapter 7, but this will result in a complete dissolution of the business in question. Business reorganization is possible under Chapter 11, although liquidation of assets can also occur. Additionally, businesses also have the option to cancel some debts if creditors agree it is advantageous for both parties to do so.

For more than 25 years, Greene Law, PC has provided clients with reliable and informed legal counsel capable of garnering the best possible results. Contact this esteemed Farmington law firm today by calling (860) 676-1336. You can also visit them online for more information on how quality legal advice can help with your bankruptcy case.