CHAPTER 7 BANKRUPTCY — A Chapter 7 bankruptcy allows you to discharge all your debts with some exceptions. You do not make monthly payments in this type of bankruptcy. Instead of payments, only your non-exempt property (if any) is distributed to your creditors, and in exchange you emerge from bankruptcy debt-free. In the vast majority of Chapter 7 bankruptcy cases you are allowed to keep your home and vehicles as long as they fit within your allowed exemptions.
CHAPTER 13 BANKRUPTCY — A Chapter 13 bankruptcy allows you to discharge all your debts, even some debts that are not dischargeable in a Chapter 7 bankruptcy. Instead of losing your non-exempt property, you are allowed to retain it. You make monthly payments over a period of 36-60 months and you are allowed to retain your vehicle and home.
CHAPTER 11 BANKRUPTCY — A Chapter 11 bankruptcy is a reorganizational bankruptcy often associated with business. Although it is businesses that primarily file for Chapter 11 it is also available to individuals. A Chapter 11 is similar to a Chapter 13 in some ways and allows for a business to obtain a discharge of its debts while maintaining business and keeping property that otherwise may be lost. Individuals and small sole proprietorships are often able to reorganize under Chapter 13 which is a less expensive alternative.
WHAT TYPE OF BANKRUPTCY IS BEST FOR ME