Types Of Bankruptcies, And How To File The Right Paperwork

Bankruptcy is a very alarming position. The term “bankrupt” itself sounds so negative and undesirable. The local media always give us terrible stories of strong business giants apparently going bankrupt. You may have a hard time thinking and admitting to yourself that you must get help to get rid of your increasing debts, or that you can’t possibly do it alone. This is why the government has bankruptcy laws to protect not only creditors but most importantly, individuals and corporations.

If you currently have a terrifying debt-load, it may be time to face yourbudgetaryrealities. Maybe you have been trying every day to pay no attention to the ringing phone and the mountain of unpaid bills that do not seem to go away. Once you have decided to file for bankruptcy, bankruptcy attorneys in San Diego may be a big help.

What are the Types of Bankruptcies?

There are different types of bankruptcies, depending on your financial situation.

  1. Chapter 7 Bankruptcy – This is mostly used by individuals and it is simple and straightforward. This is for the discharge of debts.
  • Chapter 13 Bankruptcy – This is not used to get rid of your entire debt. It involves forming a plot to pay back creditors at least a part of what was owed.
  • Chapter 11 Bankruptcy – Businesses that are running into trouble can use this type of bankruptcy to reorganize their finances. This type of bankruptcy allows the business to carry on its operations while in bankruptcy.

There are other types of bankruptcy, including Chapter 9 for municipal governments; Chapter 12 for farmers and fishermen; and Chapter 15 for international cases and foreign debtors.

Filing your Bankruptcy Papers
There are many rules that need to be followed when filing for bankruptcy.It can be veryhard to file for bankruptcy on your own. Although you are not required to hire a lawyer, it can be helpful to talk to a bankruptcy lawyer first before you file and to help you choose which bankruptcy is right for you and filing papers correctly. If you really want to file on your own, you can discover relevant data on the federal court’s site, which likewise gives printable bankruptcy forms and timelines.