Different Types of Bankruptcies

  • Chapter 7 bankruptcy discharged

Different Types of Bankruptcies

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Bankruptcy is one of the most sought out ways to get rid of unsecured debts that people have amassed over a period. Finding themselves in a financial soup can cause panic in people. Los Angeles based bankruptcy law firm Recovery Law Group, advises that there are a number of options when it comes to a bankruptcy filing. The most common chapters include Chapter 7 and Chapter 13. While the former is known as Liquidation Bankruptcy and involves the selling of the non-exempt property to pay your dues; the latter, also known as Wage-earner’s plan, makes sure that the creditors get paid some portion of their dues through a repayment plan. Other chapters of bankruptcy have rarely found their due. the various other bankruptcy chapters include:

  • Chapter 9

This chapter caters to get rid of debts of municipalities, cities, and towns when the conditions turn out to be insolvent.

  • Chapter 11

It is the 3rd most common type of bankruptcy chapter and is used to reorganize the business debts and assets of the bankruptcy filer.

  • Chapter 12

This provision is available exclusively to fishermen and farmers for adjusting their debts. Though it is slightly difficult, it is perhaps the best option available.

  • Chapter 15

This chapter is to assist those debtors who have some debts within the U.S. and some outside the country.

Considering that several options are available for a bankruptcy filing, consulting with qualified attorneys Los Angeles is important before you decide to file for one. You can call 888-297-6023 to schedule an appointment with the best bankruptcy lawyers.


    2019-09-25T13:32:40+00:00