About Bankruptcy

If you are looking to find debt relief and think filing for bankruptcy is an option, then there are a few things you should know about it. Filing for bankruptcy is a very big decision. Not everyone qualifies for bankruptcy and for those that do, there are numerous considerations including what form of bankruptcy to file. There are six types of bankruptcy and which one you will want or need to file depends on your financial situation and the type of debt you have. For example, are you filing as a business or individual and are your debts secured or unsecured? The best way to determine whether or not you qualify for bankruptcy and which type to file for is to speak with a bankruptcy professional and find out if you are qualified and for which type of filing. Below is a brief description of the six types of bankruptcy available to businesses and individuals in the United States.

Types of Bankruptcy

• Chapter 7 - This requires a business or individual's seeking credit protection to liquidate assets and pay balances to secured debt creditors and seek protection against unsecured credit lenders.
• Chapter 9 - Chapter 9 is intended to assist municipal entities, like cities and states that are in financial trouble.
• Chapter 11 - Typically this class of filing is for businesses, but individuals may qualify also. This form of bankruptcy can put a "stay" on any legal action against the filing party while finances are re-organized and consolidation or other loans are acquired to pay debts or continue operation without fear of legal action or asset seizure by creditors.
• Chapter 12 - This filing is only available to family farmers and fishermen seeking protection against creditors, so they can continue to operate their farm or fishing business without having their assets seized.
• Chapter 13 - Chapter 13 is for individuals. With this filing a plan is designed to pay back some or all of their debts over a period of time. Some unsecured debts may not have to be paid back at all and others may be opted out of the protection if the filing party chooses.
• Chapter 15 - This type of filing is for special and international cases. A bankruptcy attorney can tell you what cases qualify as special or international and whether or not it applies to your particular case.

The properties of each of the above types of bankruptcy vary greatly on a case by case basis, so if you think that bankruptcy might be the right option for you, then you should speak to a bankruptcy attorney or other bankruptcy expert. They can help you determine what type of filing you are qualified for and which of those best fits your financial situation. Bankruptcy is a complicated legal matter, but the right help and advice are available. Let us help you connect with experts that can assist you in determining if bankruptcy is the right solution for your situation.