What Are All the Different Types of Bankruptcy?

When facing overwhelming financial challenges, bankruptcy can offer a fresh start and a path to financial stability. However, navigating the world of bankruptcy can be complex, as there are several different types, each with its own nuances and eligibility criteria. This page aims to provide an overview of the various types of bankruptcy available to individuals and businesses.

Chapter 7 Bankruptcy: Also known as "liquidation bankruptcy," Chapter 7 involves the liquidation of non-exempt assets to pay off creditors. It's suitable for individuals with limited income and significant unsecured debts.

Chapter 13 Bankruptcy: Referred to as a "reorganization bankruptcy," Chapter 13 allows individuals to create a repayment plan over three to five years to pay off debts while retaining their assets.

Chapter 11 Bankruptcy: Primarily used by businesses, Chapter 11 allows for reorganization while the business continues to operate. Individuals with substantial debts can also file for Chapter 11.

Chapter 12 Bankruptcy: Designed for family farmers and fishermen, Chapter 12 provides a way to reorganize debts and develop a repayment plan based on seasonal income fluctuations.

Chapter 9 Bankruptcy: Reserved for municipalities such as cities, towns, and counties, Chapter 9 assists in restructuring debts and formulating a repayment plan.

Chapter 15 Bankruptcy: Applies to international cases involving foreign debtors with assets in the United States, allowing coordination with foreign insolvency proceedings.

Contact Our Los Angeles Bankruptcy Lawyers

Understanding which type of bankruptcy is right for you depends on various factors, including your financial situation, income, assets, and debt level. Consulting with an experienced bankruptcy attorney is crucial to determining the best course of action for your unique circumstances.

At Weintraub Zolkin Talerico & Selth we specialize in bankruptcy law, offering personalized guidance tailored to your needs. Our dedicated legal team will help you navigate the complexities of bankruptcy, guiding you toward a brighter financial future.

Our California Bankruptcy Services:

  • Detailed assessment of your financial situation
  • Guidance on the most suitable bankruptcy chapter for your needs
  • Assistance with paperwork and filing requirements
  • Representation in bankruptcy court proceedings
  • Advocacy for your rights throughout the process

Contact Our California Bankruptcy Lawyers

If you're considering bankruptcy as a solution to your financial challenges, Weintraub Zolkin Talerico & Selth is here to help. Contact us today to schedule a consultation and take the first step toward regaining control of your financial future.

Call (310) 220-4147 to discuss if bankruptcy is the right option for you.