There are several chapters of bankruptcy, and to the novice it can seem quite confusing. The purpose of this video is to explain in a short and concise manner, the four chapters in bankruptcy most used in America today.
In this video, Southern Maryland bankruptcy attorney Daniel J. Guenther explains the four primary chapters of bankruptcy: Chapter 7, Chapter 11, Chapter 12 and Chapter 13.
While there are other kinds of bankruptcies, these are the four primary chapters 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 chapter, these are not as common as personal bankruptcies.
There are two chapters of bankruptcy which more frequently meet the needs of individuals and families. Chapter 13 is equivalent to a personal reorganization. It’s generally considered a wage earners debt repayment bankruptcy plan.
Mr. Guenther will speak and advise you in common sense terms and remove the confusion associated with bankruptcy in general and the chapters of bankruptcy in particular.
In other words, similar to what the Chapter 11 bankruptcy 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. Of the four chapters of bankruptcy covered here, the Chapter 7 is the most widely used bankruptcy across America. Chapter 7 generally helps people become completely debt free and gives them get a fresh start.
