Bankruptcy

Everything you wanted to know about bankruptcy but did not know who to ask. We review the various options and types available to help you determine what is best for your situation. Also provide in depth learnings and information from others that have declared bankruptcy and review the alternatives to bankruptcy.

We have assembled a tremendous amount of information on bankruptcy, be sure to see our bankruptcy advice section where others that have been through bankruptcy share pointers and lessons learned so you can avoid the mistakes they have made. While reviewing this information, keep in mind that all situations are different and that bankruptcy rules can be confusing, therefore we recommend contacting a bankruptcy lawyer to lead you through the process.

Types of Bankruptcy
If you have determined that bankruptcy is your best approach to debt relief, there are several bankruptcy options available. The most common are chapter 7 and chapter 11. Chapter 7 is a discharge (more information below) while chapter 11, chapter 12 and chapter 13 are reorganizations (again more information below). There are tradeoffs to each one and some take longer to reestablish credit, etc. afterwards therefore it is worth spending a few minutes and understanding each one to determine which is best for your situation.

Chapter 7 Bankruptcy
This is a very popular choice for both consumer bankruptcy and business bankruptcy since it is a discharge, meaning you no longer have to repay your debt. However there are eligibility requirements and if you are judged to be able to make some payments you may not be eligible for Chapter 7 bankruptcy. See our Chapter 7 Bankruptcy section for additional details.

Chapter 11 Bankruptcy
This is a reorganization bankruptcy in which a payment plan is agreed for debt payment. Chapter 11 bankruptcy is available for consumer and business bankruptcy but is used mostly by businesses since it is more expensive and complicated then the more popular Chapter 13 that is common for consumer bankruptcy. See our Chapter 11 Bankruptcy section for additional details.

Chapter 12 Bankruptcy
Similar to Chapter 13 bankruptcy but specifically for farmers and fisherman. This provides a few special provisions allow the release of property that is required for working in these industries. See our Chapter 12 Bankruptcy section for additional details.

Chapter 13 Bankruptcy
One of the most popular forms of bankruptcy. This like Chapter 11 and Chapter 12 is a reorganization which means a payment plan is agreed with your creditors and they are repayed following the direction of the court. Chapter 13 bankruptcy can only be used for consumer bankruptcy, therefore is a popular option for those that do not qualify for Chapter 7 Bankruptcy. Depend on your circumstances and debt your reorganization may require payment in full, partial payment or no payment at all in which case the debt is usually discharged. See our Chapter 13 Bankruptcy section for additional details.

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