What are the different types of bankruptcy?

There are several different types of bankruptcy recognized in California, as outlined by Chapter 7 Law. The most common types include Chapter 7, Chapter 11, and Chapter 13. Chapter 7 bankruptcy, also known as “liquidation” bankruptcy, is a common form of bankruptcy in California. This type of bankruptcy allows individuals to discharge most of their unsecured debt, such as credit cards or medical bills. It also allows individuals to keep certain exempt property, such as a car or home, so long as the payments are kept current. Chapter 11 bankruptcy is mostly used by businesses, and it is a type of reorganization bankruptcy. This type of bankruptcy is meant to restructure the debts and obligations of a business so that it can remain in operation while paying its creditors. Chapter 13, or reorganization bankruptcy, is another type of bankruptcy in California. This type of bankruptcy allows individuals who have a steady income to liquidate their debt and enter into repayment plans with their creditors. The repayment plan is overseen by a court and must be approved by all of the creditors involved. In addition to the three main types of bankruptcy, there are other, less commonly used forms of bankruptcy, such as Chapter 9 and Chapter 12. Chapter 9 is mainly used by municipalities, such as cities, to help them reorganize their debt. Chapter 12 is used by family farmers and fishers, and it is similar to Chapter 13 bankruptcy but it focuses on specific issues relating to these types of businesses.

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What are the different types of bankruptcy?

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