Friday, 2 May 2014

Bankruptcy Chapters

When filing for bankruptcy, a person or organization files a case under a particular chapter of title 11 of the United States bankruptcy Code.

When people talk about bankruptcy, they are usually referring to one of the two most common types: Chapter 7 or chapter 13 bankruptcy. Chapter 7. Chapter 9. Chapter 11. Chapter 12. Chapter 13. Also known as "wage-earner bankruptcy," Chapter 13 is a rehabilitation plan for individuals with a regular source of income.

Chapter 15. Added to the U.S. Code in 2005, Chapter 15 deals with cases involving debtors, assets, and other parties in multiple countries.

In chapters 7, 12, and 13 (and in a few chapter 11 cases) a trustee is appointed by the U.S. district court to oversee the case.

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