Bankruptcy is sometimes a part of life, an unfortunate occurrence that can impact successful companies and individuals. For example, the Pittsburgh Penguins of the National Hockey League completed bankruptcy filings on two separate occasions–once in 1975 and again in 1998–and were the only sports team to do so. But if the team’s example demonstrates anything, it is that recovery and perhaps restoration of one’s credit is achievable as long as there is competent financial supervision and foresight.
With this in mind, it makes sense to consult with bankruptcy attorneys, perhaps even those bankruptcy lawyers in Michigan. Statistically speaking, 2011 saw 84% of bankruptcy cases in the state identified as “Chapter 7,” as opposed to only 16% that were considered “Chapter 13” that year. But what is the difference between Chapter 7 vs Chapter 13?
Chapter 7 bankruptcy uses liquidation as a means of alleviating debt in a more prompt manner. In Chapter 13 bankruptcy, the court presides over financial restructuring while the company is still bringing in revenue, with the ultimate goal being revitalization.
That said, it is important to recognize that one’s credit rating may falter, if it has not done so already. But with the right guidance, perhaps from the right bankruptcy lawyers, it is possible to recover.
If you have questions, comments, or suggestions regarding bankruptcy in general or Chapter 7 vs Chapter 13 specifically, you may share your thoughts in the section below.