The Basic Bankruptcy Options Part 2

Filed in archive Information About on July 9, 2010

© stephenyeargin

A continuation of my previous post about the basics of bankruptcy. This covers the remaining bankruptcy options available to consumers and businesses alike.

Chapter 11 Bankruptcy

This type of bankruptcy is primarily aimed at businesses. Several well-known businesses have made headlines when they applied for Chapter 11 Bankruptcy Reorganization over the past few years. This type of bankruptcy is similar to Chapter 13 but only for businesses. It generally will allow the business to continue operation as long as they pay a monthly sum to debtors.

Chapter 9 Bankruptcy

This form of bankruptcy protection is limited to municipalities. This is the form of bankruptcy that is used when a city is in too much debt to cover their expenses.

Chapter 12 Bankruptcy

This type of bankruptcy is extremely similar to Chapter 13 but it is only avialable to farmers and fishermen. There are some added benefits to the filer when compared to Chatper 13, such as more exemptions and a higher debt ceiling.

Chapter 15 Bankruptcy

This form of bankruptcy is available only to foreign entities. When bankruptcy cases outside of the US require US cooperation and government documentation this is the type of filing that is used. This has become more and more popular as the economy becomes more global. This form of bankruptcy is one of the youngest as it was enacted in 1978.