Types of Bankruptcy

Phoenix Bankruptcy Lawyers

In the United States, there are numerous different types of bankruptcy that a person or business can file for:

Chapter 7 Bankruptcy (individual consumer) – Chapter 7 Bankruptcy is a type of bankruptcy that involves the discharging of a person’s debts.  It also involves liquidation, which is the process of selling a person’s property for profit which is then turned over to the person’s creditors.  Chapter 7 Bankruptcy is the most common type of bankruptcy in the United States.

Chapter 13 Bankruptcy (individual consumer) – Chapter 13 Bankruptcy is a type of bankruptcy that is filed for by people who wish to repay their debts over the course of 3 to 5 years.  In order to successfully file for this type of bankruptcy, people must prove that they have steady monthly income and are capable of repaying their debts.  Their debts must not exceed a certain amount.

Chapter 11 Bankruptcy (business) – Chapter 11 Bankruptcy is a type of bankruptcy that is filed for by businesses of a larger size.  During Chapter 11, businesses will receive protection from the courts while they try to reorganize their companies to reduce costs and to increase revenue.  They will then work to repay their creditors over the course of time.

Working with a Bankruptcy Lawyer

When people are thinking about filing for Chapter 7, 13 or 11 Bankruptcy, it is important that they review their legal options and rights with a qualified attorney who is highly experienced in bankruptcy law.  Bankruptcy is a legal process that should always be taken very seriously.  In order to ensure that the best outcome is obtained, people should retain the services of a bankruptcy attorney who understands their individual circumstances, goals and financial situations.

Phoenix Bankruptcy Law Firm

If you are considering bankruptcy, contact our independent Phoenix bankruptcy lawyers today!

The Phoenix Bankruptcy Law Firm, Inc. assists individuals who are looking to file for bankruptcy in Phoenix and surrounding areas in Arizona such as Tuscon, Mesa, Glendale, Tempe and Prescott.