With the devastating floods hitting Nebraska, many individuals are left wondering how they are going to deal with the financial distress that the flooding has caused. Even with flood insurance, some policies may not cover the type of flooding that occurred. Farmers have lost entire herds of livestock. People have lost homes. Businesses have lost entire fleets of trucks. It can be overwhelming.
When dealing with the financial distress exacerbated by a flood, bankruptcy may be the ideal solution. A bankruptcy does not mean you are giving up, it helps provide the tools to move forward.
Chapter 7 Bankruptcy
With a Chapter 7 Bankruptcy, you are able to eliminate your legal obligation on your home mortgage, car loans, credit cards, and medical bills. Wherever you are in Nebraska, you can move forward debt free so that you can focus on rebuilding your life after the flood. The Chapter 7 Bankruptcy process from filing to discharge of debt takes 3-4 months.
Chapter 13 Bankruptcy
With a Chapter 13 Bankruptcy, you are able to handle your debts through a voluntary 3-5 year repayment plan. The Chapter 13 Bankruptcy works well for individuals impacted by the flooding in Nebraska, who have fallen behind on house or car payments, but want to cure the default payments.
Chapter 12 Bankruptcy
For the farmer facing financial hardship because of the flood, a Chapter 12 Bankruptcy is designed to provide assistance through a plan of reorganization/liquidation. One of the main benefits is that any income tax liabilities incurred through liquidation are handled just like a credit card or medical debt.
Chapter 11 Bankruptcy
For the small business owner in Nebraska, the flood may have destroyed equipment, facilities, and vehicles. It may impact customers who no longer have the ability to pay for goods or services. It may impact labor that is unable to make it to work. This all impacts the bottom line and the ability to service debt. A small business in Nebraska may use a Chapter 11 Bankruptcy to restructure/reorganize its business, using the benefits of the bankruptcy laws to do so.
Non-Bankruptcy Debt Resolution
For those experiencing flood-related financial distress in Nebraska, your lenders or the bank may be more willing to work with you to restructure your debt or provide temporary relief.
At Koenig|Dunne, we understand that the flooding has been devastating to many, but we are here to help you with the financial distress many in our state are experiencing.