Types Of Bankruptcy

There are six types of bankruptcy under the Bankruptcy Code, located at Title 11 of the United States Code:

 

Chapter 7: basic liquidation for individuals and businesses; also known as straight bankruptcy;

it is the simplest and quickest form of bankruptcy available, to help you eliminate your debt.

 

Chapter 9: municipal bankruptcy; a federal mechanism for the resolution of municipal debts.

 

Chapter 11: rehabilitation or reorganization, used primarily by business debtors, but sometimes by individuals with substantial debts and assets; known as corporate bankruptcy, it is a form of corporate financial reorganization which typically allows companies to continue to function while they follow debt repayment plans.

 

Chapter 12: rehabilitation for family farmers and fishermen.

 

Chapter 13: rehabilitation with a payment plan for individuals with a regular source of income; enables individuals with regular income to develop a plan to repay all or part of their debts; also known as Wage Earner Bankruptcy.

 

Chapter 15: ancillary and other international cases; provides a mechanism for dealing with bankruptcy debtors and helps foreign debtors to clear debts.

 

The most common types of personal bankruptcy for individuals are Chapter 7 and Chapter 13. 

As much as 65% of all U.S. consumer bankruptcy filings are Chapter 7 cases.

Corporations and other business forms file under Chapters 7 or 11.

OFFICE LOCATION

LINKS

HOURS

1420 N. Renaissance Dr.  Suite 301-D

Park Ridge, IL 60068

www.podkowalaw.com

Mon-Fri: 9:30AM - 8:00PM

Sat: 9:00AM - 5:00PM

The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation.

This information is not intended to create, and receipt or viewing does not constitute an attorney-client relationship.

 

© 2019 All Rights Reserved.