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Types of Bankruptcy

Types Of Bankruptcy

Chapter 7

Otherwise referred to as a “Straight Bankruptcy” or “Liquidation”. In a Ch. 7 Bankruptcy, the debtor can discharge (eliminate the legal obligation to repay) unsecured debts. you’ll be ready to keep valuable assets, as there are some exemptions which will be available to you. But any property that doesn’t meet one among these exemptions could also be sold to pay a number of your debt. Fortunately, Florida features a fairly generous number of exemptions which can preserve a number of your property.

Chapter 11

Sometimes called “Reorganization,” Chapter 11 Bankruptcy is especially employed by business to take care of control of operations while they’re unable to pay their creditors. In some cases, Chapter 11 could also be employed by individuals, as well.

Chapter 12

Similar to Chapter 13, however, Chapter 12 Bankruptcy can only be employed by Farmers and Fishermen.

Chapter 13

Chapter 13 permits a private a “personal reorganization.” A debtor who is currently receiving an income can discharge some of debts, then pay the rest in accordance with a Payment Plan, typically over a 3–5 year period. Chapter 13 is usually wont to help debtors restructure a home equity credit or automobile loan and still maintain possession of the house or car.

Most individuals or joint–debtors will file for a Chapter 7 or Chapter 13 Bankruptcy.

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