What is a Non-Consumer Bankruptcy?

While a person may make a good living and pay all financial obligations and debt; a bad business decision can cause a business closure. A person may fall behind on a rental property mortgage because the tenants are not paying their rent; there are so many outside factors that can cause financial issues that are not planned for, leaving a person feeling stuck or trapped. When you are earning a good living and are financially responsible, bankruptcy may not appear to be an option for you; however, it actually can be an option.
A non-consumer bankruptcy means that you need to file bankruptcy to get out of debt that is not associated with credit card debt. If you are in an accident or have a child that is ill, and your medical debt is uncontrollable, you may qualify for a non-consumer chapter 7 bankruptcy. If you have a business studio and have closed your business and there is a foreclosure on your studio, you may qualify for a non-consumer chapter 7 bankruptcy. If your non-consumer debt (credit cards are considered consumer debt) is more than fifty (50) percent of the debt you are attempting to discharge, and you want to file a chapter 7 and not a chapter 13, this may be what you are looking for. A chapter 13 is always another option.
A chapter 7 is the bankruptcy most people are familiar with: you file bankruptcy, you discharge all of your debt, and you get a clean slate. With a chapter 7 there are still certain debts you have to pay (i.e. student loans, alimony, etc.) and there may be some assets you have to relinquish. A chapter 13 is a reorganization payment plan: you keep all of your assets and pay a percentage of the debt that you owe, sometimes it can be a high percentage… 60 or 80 percent, and sometimes it can be 0 or 5 percent (there is a range, this is just an example… everyone’s plan is different and the percentages they pay vary).
For more information on a non-consumer bankruptcy, a chapter 7 or 13 please call the law office of Schwam-Wilcox & Associates and speak to an attorney for 30 minutes, which is complementary. The attorney can help you determine if bankruptcy is an option for you and which chapter would work best with your facts. You can reach the firm by calling 407-245-7700, e-mailing to info@cbswlaw.com or visiting our website at www.cbswlaw.com. When you’re going through your worst, we are at our Best!

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