Bankruptcy laws are enacted by Congress under Article I, Section 8 of the United States Constitution. The chapter of bankruptcy an individual or business will file depends on several factors. Chapters 7, 13, and 11 are the most common.
Quick Look :
- Chapter 7 a liquidation. It allows individual debtors to discharge certain debts, but any nonexempt property of the debtor may be liquidated or sold to pay back creditors. Learn more >>
- Chapter 13 is a reorganization that can allow a debtor to keep property. Debtors are required to pay all allowed claims and arrears over a set plan period (3 or 5 years). Only individuals can file for Chapter 13 and only if their debt is below the statutory limit for chapter 13. Learn more >>
- Chapter 11, like chapter 13, is a reorganization of debts. A big difference is that corporations may reorganize under Chapter 11. An individual must reorganize under chapter 11 (as opposed to a chapter 13) if their debt exceeds the Chapter 13 statutory limits. Learn more >>
Learn More about Bankruptcy
Bankruptcy Basics
General information about bankruptcy, the bankruptcy discharge, detailed information about all the different chapters, and bankruptcy terms.
Personal Bankruptcy: Is it Right for You?
Publication by the City Bar Justice Center. Informational guide for individuals interested in filing for bankruptcy.
Bancarrota Personal: Es Conveniente para Usted?
Publicación del City Bar Justice Center. Guía informativa para personas interesadas en declararse en quiebra.
Bankruptcy: Options for Small Businesses in Distress
Publication by the City Bar Justice Center. Informational guide for small businesses considering bankruptcy.