| |
Types Of Bankruptcy
There are four types of bankruptcy codes available for debtor
- Chapter 7 Bankruptcy
Chapter 7 form of bankruptcy is worked upon by debtors who at the current stage are financial low and with loads of debts which they are unable to pay. Chapter 7 bankruptcy wipes away all the debts and provides the debtor with a fresh start in life. This kind of bankruptcy is often referred as straight bankruptcy. In the process a trustee takes hold of all the non-exempt property and sells it to pay off the creditors. This four month procedure gives the debtor discharge of all dischargeable debts. Most of the cases under chapter 7 are like there are no assets for the debtor to loose and hence helps the person by providing a fresh start.
- Chapter 11 Bankruptcy
Chapter 11 is also termed as Reorganization and is directed for reorganization of a business and also for some consumer debts. However the provisions of chapter 11 bankruptcy are too hard to understand without the attorney beside.
- Chapter 12 Bankruptcy
This bankruptcy is limited to fishermen and farmers. In a way it is similar to chapter 13 bankruptcy where the person with debts is allowed to pay the creditors in some duration of time from future earnings. But the income of the debtor should be only from a farm owned by his family or a commercial fishing operation.
- Chapter 13 Bankruptcy
Chapter 13 is for the individuals who are having a regular income and can make payments in part or full in installments over a period of time. There is an eligibility criteria for filing chapter 13. Some maximum dollar amount debt is set by bankruptcy code for the people who can be allowed to file chapter 13 bankruptcy.
Chapter 7 and Chapter 13 are the most commonly used bankruptcys and are discussed in brief at the following links.
[Bankruptcy Chapter 7]| [Bankruptcy Chapter 13]
|