The Different Chapters of Bankruptcy

When you are considering filing for bankruptcy, it is important to understand the different chapters available to you. An experienced attorney like Michael A. Koplen can review your individual circumstances and fully explain your various options. For individuals, the three most commonly filed bankruptcies are:

Chapter 7. In a Chapter 7 filing, you typically will be able to discharge or eliminate most or all of your debts. You also may be able to keep most of your assets. You must be able to pass the means test to be eligible to file this type of case. Most consumers file for Chapter 7.

Chapter 11. A Chapter 11 bankruptcy is mostly used by companies that wish to stay in business and reorganize their debts. However, under certain circumstances, individuals who are not eligible to file under either Chapter 7 or Chapter 13 may be able to obtain debt relief under Chapter 11.

Chapter 13. A Chapter 13 filing allows you to pay a portion (or all) of your debt over a period of 3 to 5 years through a plan of reorganization. Additionally, a Chapter 13 debtor can keep the majority of your assets.

If you are interested in learning more about filing for bankruptcy protection and what chapter would benefit you most, contact The Koplen Law Firm to schedule an initial consultation.