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.
Attorney: Stephen Biggie
Date Filed: August 23, 2012
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