There are 5 chapters that one may file bankruptcy under the bankruptcy
code (they are called chapters after the chapter of the code they come
from). Chapter 7 - Liquidation, Chapter 9 - Municipality,
Chapter 11 - Business Reorganization, Chapter 12 - Family Farmer
Reorganization, and Chapter 13 - Consumer Reorganization.
Chapter 9 is only available to municipalities and I will not be
covering this chapter. It is important for individuals to know that if they are to file a bankruptcy, regardless of the chapter, they are required to complete a credit counseling course prior to filing, and a debtor education course after filing, but before the discharge can be granted. A list of approved providers for these providers is available at http://www.justice.gov/ust.
The similarities differ when it comes to
how property is treated. As I mentioned, a chapter 7
bankruptcy is a liquidation, whereas the other chapters involve
reorganizations. As a result, in a chapter 7 property that is
not exempt is liquidated whereas in the other chapters most property is
not liquidated. For further information on a specific chapter
click on the corresponding links on the left. |