You’ve been struggling with your finances lately because you’re in so much debt. Now, you’re considering filing for bankruptcy.
There are six different types of bankruptcies, but not all of them will apply to your situation. In fact, likely only Chapter 7 and Chapter 13 will be options for you.
Here’s a rundown of all the different bankruptcies.
Chapter 7 is also called liquidation bankruptcy, and it’s typically what individuals file for. A trustee whom the court appoints will oversee the liquidation of your assets to pay off your creditors. Any other unsecured debts, aside from taxes and student loans, will be erased.
Chapter 13 bankruptcy lets you keep your assets and simply reorganizes your debt. You can make a monthly payment so you can pay back part of your unsecured and secured debt over three to five years.
This is for fishermen and family farmers so that they don’t have to sell their property or experience foreclosure. It has higher debt limits and more flexibility than Chapter 13, though it is similar to it.
Chapter 9 is for financially-strapped municipalities to reorganize their debts and get some protection from creditors at the same time.
Chapter 11 is utilized when reorganizing a corporation or some other type of business. It allows the business to stay open while repaying its debt.
This is for international bankruptcy problems; a foreign debtor can apply for bankruptcy through the U.S. court system.
Get in Touch With Richard P. Arthur
Richard P. Arthur, Attorney at Law, will assist you with filing for bankruptcy. You can call 937-254-3738 for a consultation. He has nearly three decades of experience helping clients in Dayton and Trotwood, as well as Montgomery, Greene, Miami, Clark, and Warren counties.