Types of Bankruptcy: Chapter 7 and Chapter 13 Overview
The most common types of bankruptcy are Chapter 7 or Chapter 13. Chapter 7 is known as “straight” bankruptcy or “liquidation.” It requires an individual to give up property which is not “exempt” under the law, so the property can be sold to pay creditors. Generally, those who file Chapter 7 keep all of their property except property which is very valuable or which is subject to a lien which they can not avoid or afford to pay.
Chapter 13 is a type of “reorganization” used by individuals to pay all or a portion of their debts over a period of years using their current income.
Learn more about the different types of bankruptcy by watching the video below.
Deciding which to type to file for depends on a number of factors that we will be happy to discuss with you. Contact Toledo bankruptcy attorney Scott Ciolek today so that you can make the most of your rights under the bankruptcy law. (419) 740-5935
Ciolek, Ltd.