As someone who has experience in the bankruptcy process, you may be wondering which type of bankruptcy is right for you. In this article, we will provide you with a guide on the different types of bankruptcy and which one is best for you in 2024.
This is a legal process in the United States by which an individual, business or government can reorganize and restructure their debt payments and file the voluntary petition with the appropriate court. Once filed and completed, a copy of bankruptcy records can be obtained at the courthouse where the case was originally filed, through pacer or via record retrieval companies.
There are three main types: Chapter 7 Bankruptcy, Chapter 13 Bankruptcy and Chapter 11 Bankruptcy.
The Different Types of Bankruptcies
1. Chapter 7 bankruptcies
Chapter 7 bankruptcies are the most common type of bankruptcy in the United States. They’re also known as “clean” bankruptcies because they don’t involve any possessions or debts being liquidated (sold). They are simply filed to declare an individual insolvent, meaning that there’s not enough money left to pay back all of his or her creditors. By filing for Chapter 7, an individual can keep most of his or her property and avoid having to sell any assets to pay back creditors. If you want to obtain bankruptcy documents, you can find them at the courthouse.
2. Chapter 13 bankruptcies
Chapter 13 bankruptcies are less common than Chapter 7, but offer some advantages over them. First, they allow individuals to keep their homes while undergoing its proceedings. Second, Chapter 13 allows debtors to reorganize their debts into more manageable terms over a period of up to five years. This typically means that debtors are able to pay off some of their debts while still remaining obligation-free on others. Finally, Chapter 13 allows individuals to keep their income and receive financial assistance from the government while going through bankruptcy proceedings. Copy of bankruptcy records can be obtained from the courthouse.
3. Chapter 11 bankruptcies
Chapter 11 bankruptcies are the most complex types of it in the United States. They allow individuals to keep their homes and businesses but must agree to refinance all of their debt into more manageable terms. In return, its proceedings are generally more quickly resolved than those in other types.
Whatever type of bankruptcy you file, it’s important to speak with an attorney about your specific situation in order to make sure that you’re taking the appropriate steps to protect your rights and keep your finances in order.
Wrapping Up
If you’re considering it, it’s important to know the different types of bankruptcies in the US and which one would be best for you. In this 2024 guide, we have outlined the different options available in the US. No matter what your current financial situation is, always consult with a qualified attorney to get advice on which type of bankruptcy is right for you. As we previously mentioned, obtain bankruptcy documents to get started and speak with an attorney about your specific situation.
