Bankruptcy Overview



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.

Collection notices sit in folders on a dark table.