An excellent source of reliable information about bankruptcy filing is the Federal government. The official website of the federal courts, www.USCourts.gov, has all the basic necessary information about bankruptcy. The website has all the information like what is bankruptcy, which chapter is right for you, and how to successfully file for bankruptcy. Despite this website, it is best to consult an experienced bankruptcy attorney, like The Recovery Law Group, before the filing. You can visit www.recoverylawgroup.com or call on 888-297-6203.
The Bankruptcy Code (Title 11 of the United States Code) mentions six different kinds of bankruptcy. Out of the six kinds, Chapter 7 and Chapter 13 are the most popular kinds of bankruptcy. Chapter 7 is a liquidation bankruptcy. In this bankruptcy, the possession and control of the filer’s assets and properties lies in the hands of the bankruptcy trustee, who then sells those assets to repay the creditors. However, the exempt property does not become the bankruptcy estate’s property.
A Chapter 9 bankruptcy allows reorganization for municipalities like towns and cities. It is similar to Chapter 11 except that it is meant for government entities. A Chapter 11 bankruptcy allows a business entity or some individuals to repay the debts without giving up the business. The court approves the reorganization plan which gives a guarantee to the creditors of the repayment of the owed debts, while the business is still in operation. Many major US companies, like General Motors, have been Chapter 11 filers.
Chapter 12 and Chapter 13 bankruptcies allow relief from debts to regular income workers. A Chapter 12 bankruptcy is meant for the fishermen and the farmers, whereas a Chapter 13 bankruptcy is reserved for all the other kinds of employment. In these bankruptcies, the debtors are allowed to repay their debts according to a repayment plan over a specific extended period of time, without losing their entire estate to the trustee. Lastly, a Chapter 15 bankruptcy deals with cross-border cases. It deals with the properties of the debtors which are located in a foreign country.