Bankruptcy Relief
The Bankruptcy Code provides various "chapters" under which to file for bankruptcy relief. These chapters are chapter 7, chapter 13, chapter 11, chapter 12, chapter 15, and chapter 9.
Chapter 7 provides for a certain liquidation of property of individuals and certain business entities. Individuals receive a discharge of certain debt.
Chapter 13 allows an individual who has a regular source of income to reorganize secured debt, such as mortgages and car loans, and unsecured debt, such as credit cards and personal loans.
Chapter 11 provides an opportunity for businesses and individual to reorganize or liquidate their affairs while under the protection of the Bankruptcy Court.
Chapter 12 contains special provisions for family farmers and fishermen to reorganize under a chapter 12 plan.
Chapter 15 is a new chapter added to the Bankruptcy Code in 2005 to provide mechanisms to deal with cross-border insolvency cases.
Chapter 9 governs the reorganization of "municipalities", including cities, towns, villages, counties, taxing districts, municipal utilities, and school districts.
Chapter 7 provides for a certain liquidation of property of individuals and certain business entities. Individuals receive a discharge of certain debt.
Chapter 13 allows an individual who has a regular source of income to reorganize secured debt, such as mortgages and car loans, and unsecured debt, such as credit cards and personal loans.
Chapter 11 provides an opportunity for businesses and individual to reorganize or liquidate their affairs while under the protection of the Bankruptcy Court.
Chapter 12 contains special provisions for family farmers and fishermen to reorganize under a chapter 12 plan.
Chapter 15 is a new chapter added to the Bankruptcy Code in 2005 to provide mechanisms to deal with cross-border insolvency cases.
Chapter 9 governs the reorganization of "municipalities", including cities, towns, villages, counties, taxing districts, municipal utilities, and school districts.