Types of Bankruptcy
Chapter 7
Consumer Bankruptcy
Get a fresh start by cancelling debts and unwanted contracts. Creditors are forbidden by law to attempt to collect debts that have been discharged. (Note: Not all debts are dischargeable.)
Chapter 13
Consumer Bankruptcy
Pay a single monthly payment to a trustee, usually as much as you can afford, for 3 to 5 years. At the end, dischargeable debts not paid are cancelled, except long term real estate loans you wish to keep paying.
Chapter 11
Business Reorganization Bankruptcy
Restructure debts and cancel unwanted contracts. This chapter is more flexible and complex than Chapter 13. Loans can be rewritten over more than 5 years.
Chapter 12
Farmers Reorganization Bankruptcy
Restructuring similar to chapter 11, but designed spefically to meet the needs of farmers and fishermen.