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.
CHAPTER 12 BANKRUPTCY — A Chapter 12 bankruptcy is a reorganizational bankruptcy available to family farmers and fishermen. In many ways it is similar to a Chapter 13 bankruptcy but has higher debt limits and other provisions that assist eligible debtors in reorganizing their debts in the agricultural and fishing industries.
WHAT TYPE OF BANKRUPTCY IS BEST FOR ME
CHAPTER 7 OVERVIEW
CHAPTER 13 OVERVIEW