The information and pages that follow are provided to provide GENERAL INFORMATION to the visitors to this website.
On this page, there are brief discussions about the three bankruptcies that are in an attorney's arsenal, Chapter 7, Chapter 13, and Chapter 11. The visitor may then link to more in-depth discussions of the three bankruptcies or look at discussions about specific topics.
The information presented here is not intended to be legal advice and no attorney-client relationship exists between the users of this site and Mr. Hunter as a result of their visit here.
Nor is there any suggestion that by reading this site a visitor has the tools to represent themselves.
The Chapter 7 bankruptcy is the basic bankruptcy. It is called a liquidation bankruptcy or a straight bankruptcy. Generally, there are two basic rules to a Chapter 7 Bankruptcy. A debtor is relieved of most, if not all, of their financial obligations, and the debtor's property is taken and sold to pay creditors. Since 2005 debtors must meet a a financial criteria to file.
Chapter 13 is commonly called the consumer reorganization bankruptcy. Generally, debtors who file a Chapter 13 bankruptcy keep all of their property, in exchange for making payments over a three to five-year term. These payments are made to a Chapter 13 Trustee, who then pays the creditors. If a debtor makes too much money to file a Chapter 7, then a five-year Chapter 13 will be the next option. Chapter 13 can help save homes and pay tax debts.
Chapter 11 reorganization is a type of bankruptcy available to individuals and business entities such as partnerships, limited liability companies (“LLCs”), and corporations. Unlike Chapter 13 it has no limits on the amount of debt and it is highly flexible. Chapter 11 is also very complex. The flexibility and complexity make Chapter 11 very expensive. The legal fees can quickly reach tens of thousands of dollars which makes Chapter 11 unavailable to most people.
There are bankruptcies for Family Farm and Fishing Operations (Chapter 12), Municipalities (Chapter 9), and Liquidation Provisions for Banks, Railroads, and Stockbrokers. These are beyond the scope of this site and are not discussed here.