Bankruptcy Types Explained

The purpose of this video is to explain in a short and concise manner, the four bankruptcy types most used in America today.

There are several bankruptcy types, and to the novice it can seem quite confusing.  The purpose of this video to remove that confusion. In this video, Southern Maryland bankruptcy attorney Dan Guenther explains the four primary types of bankruptcy: Chapter 7, Chapter 11, Chapter 12 and Chapter 13. While there are other types of bankruptcies, these are the four primary types used by citizens in America today. Chapter 12 is limited to farmers and commercial fishermen. Chapter 11 is considered a business reorganization bankruptcy. So, when the nightly local news or your favorite business news channel announces that a local business or national company has filed for bankruptcy, it’s more than likely a Chapter 11 business reorganization. While our offices handle this bankruptcy type, these are not as common as personal bankruptcies.

There are two bankruptcy types that are much more common and meet the needs of individuals and families. Chapter 13 is equivalent to a personal reorganization. It’s generally considered a wage earners debt repayment plan bankruptcy. In other words, what the Chapter 11 bankruptcy type does for business, the Chapter 13 does for individuals and families. In a Chapter 13 bankruptcy we develop a repayment plan, a budget and propose a repayment plan for some or all of the unsecured debt along with payments to secured creditors.

Then, there is Chapter 7. Out of the four bankruptcy types covered here, the Chapter 7 bankruptcy is the most widely used bankruptcy across America, and Chapter 7 generally gets people completely debt free and helps them get a fresh start. Dan can help you decide if filing for bankruptcy is right for you. And, just as important, Dan will speak and advise you in common sense terms and remove the confusion associated with bankruptcy in general and bankruptcy types in particular.

For a free consultation call 301-475-3106 today!