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Which Bankruptcy Chapter to File?
Today in the United States more people are filing for bankruptcy than ever before. There are five different types of bankruptcy. The most common are Chapter 7, Chapter 11 and Chapter 13. Below you will find an explanation of the different chapters of bankruptcy, so you can decide which chapter is the most appropriate for you. BankruptcyAttorney Omar Zambrano we offer free consultations, and are happy to discuss all of your bankruptcy options. Call us today 1-800-562-0004 or email us.
Chapter 7 Bankruptcy – Liquidation Bankruptcy
Chapter 7 is by far the most common type of bankruptcy. Individual consumers or small businesses turn to chapter 7 when they become burdened with debt they simply are not able to pay. When the demands of creditors become unreasonable, chapter 7 is frequently the best solution. Although Chapter 7 is referred to as “liquidation” bankruptcy, the truth is in nearly every case, nothing is liquidated and the consumer or small business retains all their possessions and assets while eliminating debts. More Information
Chapter 9 – Municipality Bankruptcy
Chapter 9 Bankruptcy is only available to municipalities. This form of bankruptcy is designed to assist municipalities in restructuring their debts.
Chapter 11 – Reorganization Under the Bankruptcy Code
This chapter of the bankruptcy law is devoted to reorganization. Chapter 11 bankruptcy is available to every business, whether organized as a sole proprietorship or a corporation. Chapter 11 bankruptcy is available to individuals, but it is most prominently used by corporate entities.
Chapter 12 – Family Farmer or Family Fisherman Bankruptcy
The purpose of Chapter 12 Bankruptcy is to provide debt reorganization to farmers and fishermen. A family farmer may either be an individual or a corporation or partnership.
Chapter 13 – Individual Debt Adjustment
The chapter of the Bankruptcy Code provides for a reorganization of your debts; as long as you have regular income. With Chapter 13 you are allowed to keep your property and pay your debts over three to five years.
Chapter 15 – Ancillary and Other Cross-Border Cases
Under Chapter 15 Bankruptcy a representative of a corporate bankruptcy proceeding outside the U.S. can obtain access to the United States courts. This allows cooperation between the United States courts and the foreign courts, as well as other authorities of foreign countries involved in cross-border insolvency cases.
Not Sure Which Option is Best For You? Contact us today!