Chapter 7 Bankruptcy: This is the most common relief sought by individuals. This particular chapter is designed for individuals and businesses. It allows for total discharge of debts or a potential liquidation of assets to pay for debts. However, a debtor does NOT typically lose everything under this Chapter. There are specific exemptions that a potential debtor can use to protect the most basic assets. Proper exemption planning allows a debtor to protect his or her most basic assets including: residential real estate, vehicles, basic household goods, “simple” bank accounts and a variety of other assets that are clearly defined in the bankruptcy code. Proper exemption planning is critical at the onset of a case and experienced counsel can provide the necessary guidance and representation.

Chapter 13 Bankruptcy: This chapter is for rehabilitation or reorganization of debt for individuals and sole proprietors. So long as the debtor has some form of steady income or has the ability to generate income, he or she qualifies. In general, this Chapter tends to be a “home saver” or “asset protector”. A Chapter 13 bankruptcy will stop all foreclosure proceedings regardless of the status, even if there is a pending Sheriff Sale of said real estate. A Chapter 13 affords the debtor an opportunity to cure and reinstate a mortgage, if that is truly the problem.

Chapter 11 Bankruptcy: This chapter of bankruptcy is for the reorganization, or rehabilitation, of a business. In some cases, individuals can file this form of bankruptcy when they have substantial debts as well as a large amount of assets In general a business must secure approval from specific creditors on a reorganization plan.

Chapter 12 Bankruptcy: This form of bankruptcy is designed specifically for family farmers. It is a type of bankruptcy that allows for the reorganization or financial rehabilitation of these specific working families.