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Types of Bankruptcy

Types Of Bankruptcy

The Law Office of Brian R. Lewis specializes in Chapter 7 Bankruptcy and Chapter 13 Bankruptcy – which are the two most common types of bankruptcy filed in the United States. Chapter 7 and Chapter 13 Bankruptcy can be used for both personal bankruptcy and business bankruptcy filings.In addition to Chapter 7 and Chapter 13 Bankruptcy options, we can also assist you with Chapter 11 and Chapter 12 Bankruptcy filings. However, we recommend you contact us to discuss the best option for your particular situation.

Chapter 7 Bankruptcy – Commonly referred to as ‘straight bankruptcy,’ in Chapter 7 Bankruptcy the debtor does not set up a payment plan to repay creditors. Instead, the debts are simply eliminated – although some exceptions apply. However, if the debtor has assets that are not protected, they will be sold for the benefit of the creditors. In most consumer cases, assets are protected and the debtor does not lose any assets or property.

Chapter 13 Bankruptcy – Chapter 13 Bankruptcy is often referred to as ‘reorganization bankruptcy’ in which the debtor attempts to pay back creditors using a court-approved payment plan – which is typically set for 3-5 years. In most cases, a Chapter 13 Bankruptcy is chosen when a debtor wishes to stop a foreclosure or because their income is too high to qualify for Chapter 7 Bankruptcy.

Chapter 11 Bankruptcy – The most complex type of bankruptcy filing is Chapter 11 Bankruptcy. Although individuals may file a Chapter 11 Bankruptcy, it is also the one filed most often by troubled businesses. During a Chapter 11 Bankruptcy, the debtor will continue to function and maintain ownership of all assets while trying to figure out an organized plan to pay off creditors.

Chapter 12 Bankruptcy – Chapter 12 Bankruptcy is specifically designed for farm owners who will continue to own and control their assets while working out a repayment plan with their creditors.

Making decisions regarding bankruptcy can be very difficult. It is important and helpful to have someone on your side who knows the ins and outs of bankruptcy to assist you in making the right choices about your financial situation. Contact the Law Office of Brian R. Lewis today for your free initial consultation.