Are there different kinds of bankruptcy?

Yes, there are different kinds of bankruptcy. In California, the most common kinds of bankruptcy are Chapter 7 and Chapter 13. Chapter 7 bankruptcy is a form of liquidation bankruptcy. With chapter 7, certain assets are sold in order to repay as much of a person’s debt as possible. Once the assets are sold, the remaining debt is discharged, or forgiven. Chapter 13 bankruptcy is a form of reorganization bankruptcy. This type of bankruptcy is beneficial for those who have a regular source of income and have more assets than they can easily liquidate. The court helps to create a 3 to 5 year repayment plan that is more manageable for the debtor. Another type of bankruptcy is Chapter 11, which is typically used by businesses. This form of bankruptcy is similar to Chapter 13 but involves a restructuring process for a business instead of an individual. Finally there is Chapter 12, which is specifically used by family farmers or fishermen. This type of bankruptcy is a type of reorganization that allows debtors to repay debts over a period of time while also allowing them to continue their operations. All of these types of bankruptcy have different requirements, expectations, and limitations, so it’s important to understand the differences between them before filing for bankruptcy.

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Are there different kinds of bankruptcy?

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