What are the different types of bankruptcy?

In the state of Virginia, there are six different types of bankruptcy that are available under the U.S. Bankruptcy Code. These six types include Chapter 7, Chapter 11, Chapter 12, Chapter 13, Chapter 15, and Chapter 7 Bankruptcy Law. Chapter 7, also known as liquidation bankruptcy, is the most common type of bankruptcy filed in Virginia. This type of bankruptcy allows for the liquidation of the debtor’s non-exempt assets in order to pay off their creditors. This type of bankruptcy does not require a repayment plan, although a court-appointed trustee will be assigned to examine the assets and determine the value. Chapter 11 bankruptcy is commonly used by businesses. It reorganizes the debt of the business and allows for the business to continue operating while restructuring its debt. Chapter 12 is specifically designed for family farmers and fishermen and works similarly to Chapter 13 by allowing the debtor to create a repayment plan. Chapter 13 is for individuals and allows for the reorganization of debt and creation of a repayment plan that lasts three to five years. Chapter 15 is for debtors who have assets in more than one country. It is similar to Chapter 11 but also covers cross-border insolvency cases. Finally, Chapter 7 Bankruptcy Law works differently from the other types because it is designed for the exclusive use of debtors who are unable to qualify for any of the other types of bankruptcy. This type of bankruptcy will require the debtor to surrender any remaining assets to the bankruptcy trustee in order to repay creditors.

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What are the different types of bankruptcy?

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