While deciding to file for bankruptcy is a big decision, it is not the only decision you will have to make before you receive relief from your debts. There are different chapters of the United States Bankruptcy Code under which you can file, each with its own procedures, benefits, and requirements. The following is a brief overview of different types of bankruptcy cases.
- Chapter 7 – Both business owners and consumers can file for Chapter 7 bankruptcy to receive a discharge of their qualified debts. Chapter 7 petitioners should know their assets and property may be at risk, as a bankruptcy trustee can liquidate property prior to a discharge. For businesses, this generally means complete liquidation. Consumers have exemptions that help them protect as much property as possible.
- Chapter 11 – Chapter 11 is an option used mostly by business owners who do not want to shut down their company. Instead, the business goes under court supervision and direction before a discharge is possible. In rarer cases, Chapter 11 can be utilized by consumers who do not qualify for other types of bankruptcy.
- Chapter 13 – Chapter 13 is available only to consumers and is often used by individuals or couples who have too much income to qualify for a Chapter 7 case. In addition, if a petitioner has too much property or assets that will not be protected by exemptions, he or she may choose to file under Chapter 13 instead to keep his or her property.
The best way to know which type of bankruptcy case is right for you is to have a skilled bankruptcy lawyer evaluate your situation. We will examine many factors and can provide advice regarding the benefits and drawbacks of each type of case. This decision is very important. You should carefully consider it and never make such a decision lightly.
Discuss Your Situation with an Experienced St. Petersburg Bankruptcy Lawyer
If you or your business is struggling with debt, you should not wait to learn about your legal options from our St. Petersburg bankruptcy attorneys. Please call the law office of Berkowitz & Myer at 727-344-0123 for more information today.