Types of Bankruptcy

Common Bankruptcy Options
Chapters 7, 11 and 13

There are different types of bankruptcy. Each has its own purpose, advantages and disadvantages.

The most common used by consumers and small businesses are: Chapters 7, 11 and 13 Bankruptcy.

bankruptcy-options

Chapter 7 Bankruptcy

Wipe out your Debt and Get a Fresh Start

Chapter 7 bankruptcy, also known as a “straight bankruptcy,” is basically a liquidation proceeding. When you file chapter 7, your property is liquidated, converted to cash, and the proceeds are distributed to your creditors to repay your debt.

Once you complete the chapter 7 process, your debts are discharged and you are given a fresh start to rebuild your credit and finances.

Read more about filing chapter 7 bankruptcy.

Chapter 13 Bankruptcy

Stop Foreclosure on your Home

If you are trying to save your home from foreclosure, chapter 13 bankruptcy is the best option for you.

This type of bankruptcy is known as the “wage earner’s plan.” Under chapter 13, you can stop foreclosure proceedings on your home and propose a 3 to 5 year repayment plan.

Read more about filing chapter 13 bankruptcy.

Chapter 11 Bankruptcy

File Bankruptcy for your Business

Chapter 11 bankruptcy is known as “debt reorganization.” This type of bankruptcy is available to individuals, partnerships, corporations and small businesses that are interested in restructuring their debts. Under chapter 11 bankruptcy, there are no limits on the amount of debt you can include in your reorganization plan.

Read more about filing chapter 11 bankruptcy.

Schedule a Confidential Bankruptcy Consultation

Ready to take the first step away from debt and towards financial freedom? Contact our bankruptcy law firm.

Real World Law, PC has offices conveniently located in Upper Darby, PA and Wilmington, DE to assist you.

Call (610) 734-0750 or use this online form to schedule a no-obligation consultation with Attorney Glenn A Brown, DMD today.