Here are the different types of bankruptcy
It is vital
that when you are considering filing for bankruptcy that you
get the most advice you can regarding which type of bankruptcy is best to
you. There are actually several completely different types of bankruptcy
to choose from and can dramatically affect your future credit rating.
There are basically six different types of bankruptcy that are laid out in
the bankruptcy code. We will list below in more detail these different
types of bankruptcy to help you choose the one most suited to your needs.
The six different types of bankruptcy are:
Chapter 7 - this is one of the most common forms of bankruptcy. It
involves selling off all the person's personal assets to pay off their
creditors. This includes all personal assets which are generally sent to
auction to fetch their highest price. This money is then used directly to
pay off the creditors. The downside about this type of bankruptcy is that
you may well lose your home.
Chapter 9 - this type of bankruptcy involves adjusting the debts in a
municipality, which involves reorganising the municipalities involving
towns, villages and cities.
Chapter 11 - this is another very popular type of bankruptcy. This
generally involves the payment plan between the debtor and the creditor.
A plan is drawn up so that the debtor pays a certain amount of money every
month to suit the needs of the creditor. This proves to be a popular type
of bankruptcy due to the fact that there is no need to sell off the assets
of the person in debt.
Chapter 12 - this type of bankruptcy effects farmers and fishermen only.
There is generally an agreement drawn up which allows the farmer or
fishermen to carry on working whilst making regular payments as part of a
payment plan.
Chapter 13 - this is similar to Chapter 11 and involves a payment plan
being drawn up that allows the person in debt to make regular payments to
the creditors and doesn't involve selling off personal assets.
Chapter 15 - this is a relatively new bankruptcy chapter and was only
created in 2005. This will only concern you if you are seeking bankruptcy
from inside another country and involves cross-border insolvency.
Hopefully looking at these types of bankruptcy, you will be able to
determine which is best for you. Although we highly recommend you always
seek the advice of a suitably qualified lawyer as soon as possible.
get the most advice you can regarding which type of bankruptcy is best to
you. There are actually several completely different types of bankruptcy
to choose from and can dramatically affect your future credit rating.
There are basically six different types of bankruptcy that are laid out in
the bankruptcy code. We will list below in more detail these different
types of bankruptcy to help you choose the one most suited to your needs.
The six different types of bankruptcy are:
Chapter 7 - this is one of the most common forms of bankruptcy. It
involves selling off all the person's personal assets to pay off their
creditors. This includes all personal assets which are generally sent to
auction to fetch their highest price. This money is then used directly to
pay off the creditors. The downside about this type of bankruptcy is that
you may well lose your home.
Chapter 9 - this type of bankruptcy involves adjusting the debts in a
municipality, which involves reorganising the municipalities involving
towns, villages and cities.
Chapter 11 - this is another very popular type of bankruptcy. This
generally involves the payment plan between the debtor and the creditor.
A plan is drawn up so that the debtor pays a certain amount of money every
month to suit the needs of the creditor. This proves to be a popular type
of bankruptcy due to the fact that there is no need to sell off the assets
of the person in debt.
Chapter 12 - this type of bankruptcy effects farmers and fishermen only.
There is generally an agreement drawn up which allows the farmer or
fishermen to carry on working whilst making regular payments as part of a
payment plan.
Chapter 13 - this is similar to Chapter 11 and involves a payment plan
being drawn up that allows the person in debt to make regular payments to
the creditors and doesn't involve selling off personal assets.
Chapter 15 - this is a relatively new bankruptcy chapter and was only
created in 2005. This will only concern you if you are seeking bankruptcy
from inside another country and involves cross-border insolvency.
Hopefully looking at these types of bankruptcy, you will be able to
determine which is best for you. Although we highly recommend you always
seek the advice of a suitably qualified lawyer as soon as possible.