In the United States, there are three types of bankruptcies that an individual can file: Chapter 7, Chapter 11, and Chapter 13.
What are the most common types of bankruptcies?
Chapter 7 bankruptcy is the most common type of bankruptcy. It is a liquidation bankruptcy in which the debtor’s assets are sold to pay off creditors. The debtor is then discharged from all liability for those debts.
Chapter 7 bankruptcy is a legal process that allows people to discharge some or all of their debts. To qualify for Chapter 7, you must pass a means test, which looks at your income and expenses. If you qualify, the bankruptcy trustee will sell your assets to pay off your creditors. Once your assets are sold, you are discharged from most of your debts.
Chapter 13 bankruptcy is a reorganization bankruptcy in which the debtor proposes a plan to repay all or part of their debts over some time. This type of bankruptcy is available to individuals with regular income.
Chapter 13 bankruptcy is a type of bankruptcy in which the debtor proposes a plan to repay all or part of their debts. The plan must be approved by the court, and usually lasts for three to five years. During this time, the debtor is prohibited from incurring new debt without the approval of the court. A chapter 13 bankruptcy can be used to save a home from foreclosure or to repay delinquent taxes or child support.
Finally, and less common, is Chapter 11 bankruptcy. Chapter 11 is a reorganization bankruptcy available to businesses and individuals with regular income.
When individuals face insurmountable debt, they often consider filing for one of the most common types of bankruptcies. Filing for bankruptcy can provide individuals with a fresh start by discharging some or all of their debts. However, before filing for bankruptcy, it is important to contact a bankruptcy attorney to discuss your options and determine if bankruptcy is the best option for you.
If you are looking for Chapter 13 bankruptcy lawyer in Tampa, Please contact the Law Offices of Robert M. Geller, P.A.
