What are the different types of bankruptcy?

Simply put, there are four different types of bankruptcy:

  • Chapter 7: Complete discharge of debts
  • Chapter 11: Reorganization plan for businesses
  • Chapter 12: Similar to Chapter 7, but used mainly for farmers and fisherman.
  • Chapter 13: Repayment plan for certain types of debts

Chapter 7 bankruptcy is a discharge of your debts and is the most common type of bankruptcy for which people qualify.

It’s important to talk to a bankruptcy attorney if you are considering bankruptcy and are not sure which type of bankruptcy would most benefit you.

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