Bankruptcy Law

Chapter 7

Chapter 7 is a "liquidation" bankruptcy. This wipes out most of your general unsecured debts such as credit cards and medical bills without the need to pay back balances through a repayment plan. In order to qualify for Chapter 7 bankruptcy, you must meet income requirements.

Chapter 13

This chapter of the Bankruptcy Code provides for adjustment of debts of an individual with regular income. Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.

Chapter 11

This chapter of the Bankruptcy Code generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11