Four Types Of Bankruptcy Essay

818 Words 4 Pages
Register to read the introduction… Chapter 7 (Liquidation) is the most common. It is designed for debtors in financial difficulty who do not have the ability to pay their existing debts. Under Chapter 7, you may claim certain property exempt and a trustee may take possession of the remaining assets in order to liquidate them and pay your creditors according to priorities set forth in the Bankruptcy Code. Chapter 13 (Repayment of Debt) is designed for individuals who are temporarily unable to pay their debts, but would like to pay them in installments over a period of time. Chapter 11 (Reorganization) is designed primarily for the reorganization of a business. Its provisions are very complex and should be done only after consulting an attorney. Chapter 12 (Family Farm) is designed to permit family farms to repay their debts over a period of

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