Bankruptcy

Bankruptcy Law

There are six types of bankruptcy under the Bankruptcy Code, located at Title 11 of the United States Code:

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• Chapter 7: Basic Liquidation For Individuals And Businesses;

• Chapter 9: Municipal Bankruptcy;

• Chapter 11: Rehabilitation Or Reorganization, Used Primarily By Business Debtors, but sometimes by individuals with substantial debts and assets;

• Chapter 12: Rehabilitation For Family Farmers And Fishermen;

• Chapter 13: Rehabilitation With A Payment Plan For Individuals With A Regular Source Of Income;

• Chapter 15: Ancillary and Other International Cases. The most common types of personal bankruptcy for individuals are

Chapter 7 and Chapter 13. As much as 65% of all U.S. consumer bankruptcy filings are Chapter 7 cases. Corporations and other business forms file under Chapters 7 or 11.