There are six chapters of bankruptcy in the United States, Chapter 7, Chapter 9, Chapter 11, Chapter 12, Chapter 13 and Chapter 15, with Chapter 7 and Chapter 13 bankruptcy being the most common forms filed.
How do people fall into bankruptcy?
The common causes of bankruptcy include: Expensive Medical Bills caused by a disability or illness. Poor Financial Management related to student loans, purchasing a car or home, etc. Reduced income or job loss. Unexpected emergencies, such as a car breaking down or catastrophic damage to your property.
Is there a better option than bankruptcy?
Bankruptcy Alternatives. Your options to avoid bankruptcy include debt management plans; debt consolidation loans and debt settlement..
What do you need to know about Chapter 13 bankruptcy?
Chapter 13 is for debtors with reliable incomes who want to keep their home or car but have fallen behind on their loan payments. Chapter 13 stops foreclosure and/or repossession actions while filers enter into a court-mandated repayment plan, which will include catching up on back payments and paying off at least a portion of their unsecured debt.
Which is the most complex type of bankruptcy?
Under the bankruptcy code, a municipality could be a political subdivision or a public agency. Since it involves a larger group, this type is a lot more complex than the other bankruptcies. Chapter 11. This type of bankruptcy proceeding generally applies for business corporations.
How to choose the right type of bankruptcy?
For more specific information about which type of bankruptcy is right for you, consider connecting with an experienced bankruptcy attorney. They can review your situation free of charge. Deciding to declare bankruptcy may be the most important choice of your financial life. But it’s only the first choice.
What happens in a Chapter 7 bankruptcy case?
Chapter 7 is straightforward and essentially misnamed. While the law provides for the sale of certain assets for distribution among creditors, in fact close to 96% of Chapter 7 bankruptcies are considered “no-asset” cases: The filer has no property with sufficient equity to be seized and sold by the court-appointed trustee to pay off creditors.
