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Which Type Of Bankruptcy Is Right For Me?

Which type of bankrupty is best for you depends on your goals and what whether you meet the eligibility requirements for one or more of the various types.

Personal Bankruptcy

Most individuals (as opposed to businesses, which are addressed below) who are filing bankruptcy tend to file under chapter 7 of the Bankruptcy Code more than chapter 13. They do that because, if they do not have significant assets, they may not have to pay back any portion of their debts. A chapter 7 bankruptcy can also be faster than a chapter 13, which normally runs between three and five years and is more complicated to set up.

Chapter 13, on the other hand, is very useful for situations where you are behind on payments, including vehicle payments, mortgage payments, or tax payments. The chapter 13 plan often allows you to include the missed payments in your repayment plan, which would allow you to pay them off over the course of three to five years. A chapter 7 bankruptcy would not allow you to do that. In addition, a chapter 13 bankruptcy provides better protection for co-debtors than a chapter 7 bankruptcy. Finally, in some cases, you may also be able to discharge more types of debt.

Business Bankruptcy

Many businesses that file bankruptcy do so under chapter 11 of the of the Bankruptcy Code in order to reorganize their debt and business operations. An experienced attorney is vital to successfully managing a chapter 11 bankruptcy and can help you assess the viability of a chapter 11 bankruptcy.

More Information

To discuss your financial situation and what option is best for you in more detail, please contact us or use our online scheduler to schedule a free consultation. You may also submit your information for review by an experienced Minnesota bankruptcy attorney and we will contact you.

For information about whether you can keep your home when you file bankruptcy, click the 'Next' button.

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