Though bankruptcy is a very complicated thing and the exact steps may vary depending upon the states, each of the chapter of the bankruptcy uses the similar terminology as well as follows similar basic processes. As far as the types of bankruptcies are concerned, there are four basic types in the US. The kind of bankruptcy that a person files is dependent on various different factors which even include the fact whether it is an individual or part of some organization.
Sponsored Links :
Given below are the types of bankruptcies with a brief description about each of them:
Chapter 7: It is the most common type of bankruptcy that is filed by people and this is the chapter that they mean most of the times they discuss bankruptcy. It is basically a liquidation that means that the person who is the trustee sell off all their non exempt assets that are held by debtor in order to make sure that the debts are repaid to the largest extent.
Chapter 11: It is the most complex kind of bankruptcy filing. In this filing, debtor continues functioning and maintains the ownership of all the assets and even tries working out for the reorganization plan for paying off the creditors.
Chapter 12: This one is particularly for the farm owners. Debtors though own as well as control their assets along with working out the repayments plans with the creditors.
Chapter 13: This is quite similar to Chapter 11 but it is meant for the individuals.
Bankruptcy code is further divided or categorized into various chapters or types that are chosen as per the circumstances. Even the interpretations about these chapters for different businesses as well as individuals are also different. Talking of the different forms of bankruptcy, there are three forms that can be filed or checked out by the individuals that includes Chapter 7, Chapter 11, and Chapter 13. More..
Bankruptcy code is further divided or categorized into various chapters or types that are chosen as per the circumstances. Even the interpretations about these chapters for different businesses as well as individuals are also different. Talking of the different forms of bankruptcy, there are three forms that can be filed or checked out by the individuals that includes Chapter 7, Chapter 11, and Chapter 13.