Bankruptcy is a federal court procedure that grants debt relief and protection to debtors that are having difficulty or are totally unable to pay their creditors. Bankruptcy can be filed by individual consumers or businesses.
Chapter 7, 13 and 11 Bankruptcy Law
There are different types of bankruptcy proceedings, each having its own purposes, advantages and limitations. The three most common types of bankruptcy are:
- Chapter 7 Bankruptcy: Liquidation
- Chapter 11 Bankruptcy: Business Debt Reorganization
- Chapter 13 Bankruptcy: Individual Debt Adjustment
Our bankruptcy law firm helps individual and business debtors obtain debt relief under the U.S. Bankruptcy Code. We have two convenient office locations in Delaware County, Upper Darby, Pennsylvania and New Castle County, Wilmington, Delaware.
Chapter 7 Bankruptcy: Liquidation
Chapter 7 bankruptcy, often referred to as “straight bankruptcy,” is basically a liquidation proceeding. In a chapter 7, the debtor must relinquish all non-exempt property to the bankruptcy trustee assigned to the debtor’s case. The debtor’s possessions are then liquidated, converted to cash, and the proceeds are distributed to creditors. Once the chapter 7 liquidation process has been completed, the debtor is totally discharged from his or her debts, and often afforded a fresh start.
Chapter 13 Bankruptcy: Individual Debt Reorganization
If you are trying to save your home from foreclosure, chapter 13 bankruptcy may be the best bankruptcy option for you. Chapter 13 bankruptcy, often referred to as the “wage earner’s plan,” allows the debtor to propose a three to five year repayment plan. During this time, the creditors’ actions are “stayed,” and they are prevented from pursuing any collection efforts against the debtor as long as the debtor makes his or her plan payments as ordered.
Chapter 11 Bankruptcy: Small Business Bankruptcy
The chapter 11 bankruptcy process is often referred to as “debt reorganization.” This form of bankruptcy protection is available to individuals, partnerships, corporations and small businesses interested in restructuring their debts. There are no limits on the amount of debt you can include in your Chapter 11 debt reorganization plan, as may be the case with other types of bankruptcy.
If you can answer yes to one or more of the questions above, you may want to consider your bankruptcy relief options. Contact Real World Law, PC today to schedule a no-obligation consultation with a chapter 7, 13, 11 bankruptcy lawyer.
Real World Law, PC is the bankruptcy law practice of solo practitioner, Glenn A. Brown. Dr. Brown helps individual and business debtors obtain debt relief under Chapters 7, 11, 13 of the U.S. Bankruptcy Code. We have two convenient office locations in Philadelphia, PA and Wilmington, DE.
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