Under the U.S. Bankruptcy Code there are six types of bankruptcy. They may be found under Title 11.<\/p>\n
For those facing the possibility of bankruptcy, it may help to know that there are six types that may be considered. The common types are Chapter 7, Chapter 11 and Chapter 13. The others are Chapter 12, Chapter 9 and Chapter 15. The last three types of bankruptcy are rarely filed.<\/p>\n
Chapter 7 often involves liquidation, and businesses or individuals may file for this type of bankruptcy. To do so, the debtor needs to meet a means test to determine if they are eligible to file. Under a Chapter 7 filing, there is a court-appointed trustee\/administrator that takes possession of non-exempt assets, and liquidates them. The proceeds of the liquidation sale are used to pay creditors.<\/p>\n
A discharge under Chapter 7 typically happens within a few months after the initial petition is filed. There are a (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Under the U.S. Bankruptcy Code there are six types of bankruptcy. They may be found under Title 11. For those facing the possibility of bankruptcy, it may help to know that there are six types that may be considered. The…<\/span><\/p>\n