Types of Bankruptcy

Professional Chapter 7 and Chapter 13 Litigators

There are several different types of bankruptcy that an individual or business may file for.  Below, some of the different types of bankruptcy are defined.

Chapter 7 Bankruptcy:  a type of bankruptcy that is filed by an individual who wishes to have his/her debts eliminated.  After a person files for Chapter 7, his/her debts will be discharged.  The person’s creditors will then close his/her accounts.  This bankruptcy will appear on a person’s credit report for 7 to 10 years.

Chapter 13 Bankruptcy: a type of bankruptcy that is filed by an individual who wishes to repay his/her debts over the course of 3 to 5 years.  After a person files for Chapter 13, he/she will have to make a monthly payment that will be applied to paying off the debts the person owes to his/her creditors.  This type of bankruptcy will appear on a person’s credit report for 7 – 10 years.

Chapter 11 Bankruptcy: a type of bankruptcy that is filed for by businesses.  After a business has filed for this type of bankruptcy, it will receive protection from creditors by the bankruptcy courts while it reorganizes.  During reorganization efforts, the business will eliminate excess expenses and try to increase revenue by operating at a more efficient level.  Once it has gained financial stability and is reorganized, the business will start to pay back creditors and continue to make payments until debts are repaid.

When people have questions about the types of bankruptcy or would like to learn which type of bankruptcy is most appropriate for their individual circumstances, they should consider meeting with a qualified lawyer, like the lawyers at The Arizona Bankruptcy Law Firm.  At The Arizona Bankruptcy Law Firm we have helped over a thousand people in the United States file for Chapter 7 and Chapter 13 Bankruptcy. 

Arizona Bankruptcy Lawyers
If you are having a difficult time keeping up with your financial obligations, now is the perfect time to review your options with an experienced Arizona bankruptcy lawyer, like the lawyers at The Arizona Bankruptcy Law Firm.

The Arizona Bankruptcy Law Firm is committed to helping individuals throughout the state of Arizona file for Chapter 7 and Chapter 13 so they can get out of debt quickly.