What are the different types of bankruptcy? | The Golden Law Group | Helping Residents & Businesses Get Financial Stability | (813) 413-8700 | https://www.brandonlawyer.com | 808 Oakfield Drive, Ste A, Brandon, Florida 33511 | 9040 Town Center Pkwy, Bradenton, Florida 34202
There are basically two different types of bankruptcies for consumers. The first kind is a Chapter 7 case. A Chapter 7 case is generally considered a straight liquidation bankruptcy, where you would list all of your debt and all of your assets. Your unsecured debts, which are credit cards, medical bills, deficiencies on any old repossessions and foreclosures, those types of debts are dischargeable completely. You are allowed to keep certain assets when you file Chapter 7, those are called exemptions.
The other type of bankruptcy is a Chapter 13 bankruptcy. Chapter 13 bankruptcies are more of a reorganization type bankruptcy where you would enter into a repayment plan and make payments for a period of 3 to 5 years in order to discharge the remaining obligations of your debt.