Types of Bankruptcy - Chapter 7, Chapter 13, Chapter 11

Chapter 7

This type of bankruptcy discharges unsecured debt and the decision as to whether or not you can file a chapter 7 is based on income, expenses and assets. Many people do not qualify for this chapter of bankruptcy because they have too much excess income or they have assets that cannot be protected. In a chapter 7, most unsecured debt is discharged although certain types of debt such as taxes, alimony, child support and court fines are non-dischargeable and will survive the bankruptcy. Attorney fees, filing fees and credit counseling fees are required to be paid upfront before the case can be filed.

Chapter 13

This is the most common type of bankruptcy and can be described as a repayment plan or reorganization. In a chapter 13, we can include mortgage arrears, back taxes, child support and court fines along with credit card and medical debt. Clients make payments to the Chapter 13 Trustee that is assigned to their case and he pays your creditors as those funds are received. The filing fees are typically paid upfront but in some cases they can be added to be paid through the bankruptcy along with our attorney fees.

Chapter 11

This type of bankruptcy is normally for businesses. Attorney fees and filing fees are required upfront before the case can be filed.

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