There are four general types of bankruptcies provided under the law:
Chapter 7 is known as “straight” bankruptcy or “liquidation.” It requires a debtor to give up property which exceeds certain limits called “exemptions”, so the property can be sold to pay creditors. Under a Chapter 7 bankruptcy, all debts are eliminated and it permits the debtor to start over without having any uncollateralized debt. A Chapter 7 bankruptcy may be filed once every eight years.
Chapter 11, known as “reorganization.” It is used by businesses and a few individual debtors whose debts are very large
Chapter 12 is reserved for family farmers.
Chapter 13 is called “debt adjustment”. It requires a debtor to file a plan to pay debts (or parts of debts) from current income.
Most people filing bankruptcy will want to file under either chapter 7 or chapter 13. Either type of case may be filed individually or by a married couple filing jointly.
Please see our bankruptcy page for more information on Bankruptcy law
August 23, 2012
Our Melbourne office is centrally located in Brevard County, enabling our lawyers to serve clients throughout “the Space Coast”, including Cocoa Beach, Palm Bay and Vero Beach.