Sunday, September 17, 2006

Types of Personal Bankruptcy for Individuals

There are 3 types of bankruptcy for individuals. Chapter 7 is a liquidation of debts. Chapter 13 is for individuals who own real estate, a car or have a lease that they want to keep or their income exceeds the Median Income for their state and they fail the Means Test. Corporations are not eligible to file for chapter 13 bankruptcy protection. For more information on the Median Income and Means Test visit Chapter 11 is a reorganization for individuals or business that own many assets or whose secured and unsecured debts exceed those allowed under chapter 13 of the Bankruptcy Code.

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