Personal Bankruptcy

Pompano Beach Personal Bankruptcy Attorney

Liquidation vs. Reorganization - Which is best for me?

If you are seeking a fresh financial start, you have several bankruptcy options available to you. These many options may at first seem overwhelming. However, all bankruptcy options can be boiled down to two debt relief methods: Liquidation and Reorganization.

Each of these options has their own benefits and drawbacks. An experienced bankruptcy attorney can best help you identify the right type of bankruptcy to file to effectively discharge your debts.

What is Liquidation Bankruptcy?

A liquidation is the sale of the debtor’s assets and the use of the proceeds of that sale to issue disbursements to the creditors that are owed money by the debtor. In certain cases, the debtor will be able to retain assets that are exempt under the law.

There are several bankruptcy chapters that utilize liquidation, the most common of which is Chapter 7. You should consult bankruptcy attorney prior to filing a liquidation bankruptcy. This type of bankruptcy can lead to the forced sale of assets as well as claims being brought by a private trustee.

The professionals at Bilu Law, P.A. are here to advise you on potential liquidation options. We can help determine your exempt assets and guide you through this process.

What is Reorganization Bankruptcy?

A reorganization is a bankruptcy where the debtor proposes a plan to repay creditors. This repayment plan may offer to pay creditors a fraction of their claims against the debtor. It may also permit the extension of payments over a certain period of time to allow the debtor to better control their financial situation.

Importantly, a reorganization will avoid liquidation of the debtor’s assets to repay debts as long as the court can confirm the debtor’s proposed repayment plan. Such forms of bankruptcy can be effective forsaving a home from foreclosure.

Several bankruptcy chapters use reorganization, such as Chapter 13. A bankruptcy lawyer can help you develop your repayment plan and file under the right chapter to handle your debts.

Learn more about how Bilu Law can help you by reaching out to us onlineor calling (954) 239-7386. We offer free initial consultations for debtors throughout South Florida.

Diverse Solutions & Guidance 

Committed to Protecting Your Rights

  • Extensive Experience

    We've helped thousand of clients with their legal needs spanning across 67 counties in Florida.

  • Responsive

    We provide fast-acting and accessible legal advice. Our attorneys are there when you need them the most.

  • Hablamos Español

    Our team speaks Spanish to ensure that you understand the legalities of your case.

  • International Law Firm

    We are members of an international law firm network that allows us to assist clients nationally and worldwide.

Let Us Help Solve Your
Legal Troubles

  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.