Types of Bankruptcy

There are several types of bankruptcy. Depending upon whether an individual or a business entity is seeking to file for bankruptcy, as well as the financial situation of the debtor, a different form of bankruptcy may suit a particular situation.

  • Chapter 7 bankruptcy allows the courts to eliminate the debt you currently owe. 
  • Chapter 9 bankruptcy allows cities, towns, and municipalities to liquidate or reorganize their debts. 
  • Chapter 11 bankruptcy is used by commercial businesses who want to reorganize their debt and repay creditors while maintaining their current business operations. 
  • Chapter 13 bankruptcy allows individuals with regular income to repay their debts to creditors over an agreed upon period of time.  By doing this, individuals can avoid complete liquidation of their assets.   

To find a bankruptcy attorney in your area, click here.