| Bankruptcy is a set of federal laws designed to help those in debt. There are two types of bankruptcies, liquidation and reorganization. Chapter 7 is a liquidation bankruptcy while Chapters 9, 11, 12, and 13 are reorganization bankruptcies. The goal of a reorganization bankruptcy is protect your exempt assets while you liquidate your unsecured debt. A Chapter 7 bankruptcy is also known as a “fresh start” bankruptcy. Reorganization bankruptcies allow you to keep your assets while providing for a court – approved repayment plan to your creditors. |
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