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Which Chapter is right for you?

The Bankruptcy Code is divided into chapters. Chapters 7 and 13 relate to personal debt. Chapter 11 is designed for corporations, and Chapter 12 covers family farms.

Chapter 7

Often called “straight bankruptcy.” Created for consumer debt, Chapter 7 releases you from paying credit card debts, medical bills, and past-due utility charges. You will be able to keep certain types of property and money, such as your home, car, household goods, life insurance, retirement plans, child support, etc.

Chapter 13

is also for consumer debt, as well as sole proprietor business debt, but unlike Chapter 7, it involves an affordable repayment plan, allowing you to pay off debts in a 3 to 5 year period. This type of filing is a good idea for someone who needs to get caught up on car or mortgage payments. Your property is protected from seizure as long as the proposed payments are met.

Chapter 11

Generally, Chapter 11 is a type of bankruptcy for corporate reorganizations and individual debtors who have too much debt to qualify for Chapter 13 relief. While this filing shares many of the characteristics of Chapter 13, it is much more complex

Chapter 12

This form of bankruptcy is for financially distressed family farmers, allowing them a chance to reorganize their debts and keep their farms. It does not pertain to debtors with primarily consumer debts.

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