Types of Bankruptcy

There are different types of bankruptcy. Each has its own purpose, advantages and disadvantages. The three most common are: Chapters 7, 11 and 13 Bankruptcy.

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.

We are a bankruptcy law firm that helps individual and business debtors file bankruptcy and get relief under Chapters 7, 11, 13 Bankruptcy. We have office locations in the Philadelphia area and Wilmington, Delaware. Schedule a no obligation consultation with a bankruptcy lawyer today.

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