What Type of Bankruptcy Should I Consider?
There are four types of bankruptcy cases provided under the law:
. Chapter 7 is a ''liquidation'' or ''straight'' bankruptcy. It requires an individual
to give up none ''exempt'' property under the law, so the property can be sold to
pay creditors. Generally, those who file chapter 7 keep all of their property except
property which is very valuable or which is subject to a lien which they can not
avoid or afford to pay.
. Chapter 11, known as ''reorganization,'' of debts by businesses and individuals
with very large debts.
. Chapter 12 is designed for family farmers and fishermen.
. Chapter 13 is a type of ''reorganization'' by individuals with not very large
debts, which allow such person to pay all or a portion of their debts over a period
of years using their current income.