What Different Types of Bankruptcy Should I Consider?

There are four types of bankruptcy cases that can be considered:

Chapter 7: This is known as the “liquidation” bankruptcy which requires a debtor to give up property which exceeds your “exemptions” in order to pay off your creditors.

Chapter 11: This is known as a “reorganization” and it is used for businesses and few individuals whose debts are extremely large.

Chapter 12: This is reserved for family farmers. It is a way for them to reorganize their debts and keep their farms.

Chapter 13: This is called a “debt adjustment” and requires a debtor to file a plan to pay debts off from your current income.

Most people file bankruptcy under either a Chapter 7 or Chapter 13 however these are the options one may have.