You have a choice in deciding what chapter of the bankruptcy code will best suit your needs. Even if you have already filed for relief under chapter 7, you may be eligible to convert your case to a different chapter.

Chapter 7

Is the liquidation chapter of the bankruptcy code. Under chapter 7, a trustee is appointed to collect and sell, if economically feasible, all property you own that is not exempt from these actions.

Chapter 11

Is the reorganization chapter most commonly used by businesses, but it is also available to individuals. Creditors vote on whether to accept or reject a plan, which also must be approved by the Court. While the debtor normally remains in control of the assets, the Court can order the appointment of a trustee to take possession and control of the business.

Chapter 12

Offers bankruptcy relief to those who qualify as family farmers. Family farmers must propose a plan to repay their creditors over a 3 to 5 year period and it must be approved by the Court. Plan payments are made through a chapter 12 trustee, who also monitors the debtors' farming operations during the pending plan.

Chapter 13

Generally permits individuals to keep their property by repaying creditors out of their future income. Each chapter 13 debtor writes a plan which must be approved by the bankruptcy court. The debtor must pay the chapter 13 trustee the amounts set forth in their plan. Debtors receive a discharge after they complete their chapter 13 repayment plan. Chapter 13 is only available to individuals with regular income whose debts do not exceed $1,000.000 ($250,000 in unsecured and $750,000 in secured debts).

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The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.