Types
of Bankruptcies
There are three
types of Bankruptcies that a person can file: Chapter
7, Chapter 11, and Chapter
13. These types of bankruptcies vary and sometimes aren't always allowed
depending upon your situation.
Chapter
11 - Small Business Bankruptcy
A chapter 11
bankruptcy is designed for small businesses who have higher debt loads then
the allowed amount in a chapter 13 ($250,000 unsecured and $750,000 secured)
yet still under $2 million in combined secured and unsecured. There are exceptions
for businesses owning real estate.
The benefit to
this type of bankruptcy is that the company is still allowed to operate.
Chapter
7 - Full Discharge or Straight Bankruptcy
Chapter
13 - "Restructuring" Bankruptcy
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