Thursday, June 20, 2013

Basic Information about Six Types of Bankruptcy

Financial problems in a household are devastating. Not only do they make it difficult to live and meet your daily needs, but they also provide a great deal of stress and emotional problems. There are many solutions to financial problems including bankruptcy. The most common chapters for individuals are Chapter 7 and Chapter 13. However, there are some situations where the other chapters might apply. Following is a brief summary of six different bankruptcy chapters. After reading through these, contact an Oakland bankruptcy lawyer who can help you determine which one might work best for you.

Chapter 7 Bankruptcy

This is a very common chapter and is often known as liquidation bankruptcy. This section allows you to liquidate your assets and discharge your debt. Debt that is discharged in this chapter does not need to be repaid. Many people select this chapter in order to get a fresh start.

Chapter 13 Bankruptcy

Chapter 13 is for those who still have employment and are still trying to pay off their debts. It helps them to restructure their debt over a period of three, four, or five years. The length of time given to repay the debt is determined by the courts. This chapter also allows individuals more flexibility in keeping major assets such as their homes.

Chapter 9 Bankruptcy

This section is for municipalities such as cities, towns, or counties.

Chapter 11 Bankruptcy

This chapter is for businesses who desire to restructure their debt. While you may have heard about this type of bankruptcy in the news in relationship to large organizations, it can also be used for smaller businesses. If you own a business, be sure to ask your attorney about this form of bankruptcy.

Chapter 12 Bankruptcy

This form of bankruptcy is available for those who are in the fishing or agricultural business, such as a family farm or a family fishing business. It helps you restructure your debt over a period of three to five years.

Chapter 15 Bankruptcy

Another less-common form of bankruptcy is Chapter 15, and it handles those who have investments, assets, and even debt in countries other than the U.S. If you have foreign financial interests, you will definitely need to consult with an Oakland bankruptcylawyer.

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