By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Saturday, 21 Jun 2025
  • My Feed
  • My Interests
  • My Saves
  • History
Subscribe
VWB Blog main Logo VWB Blog main Logo
  • Home
  • General News

    The Beauty of Nature

    By VWB Blog

    5 Common First-Time Vaper Mistakes and How to Avoid Them

    By VWB Blog

    How to Select Cannabis Dispensaries: Everything You Need to Know

    By VWB Blog

    How To Develop and Maintain Unwavering Self-Confidence

    By VWB Blog

    The Importance of Utility Substation Painting

    By VWB Blog

    Escape Room Strategies to Help You Break Out

    By VWB Blog
  • Technology
    A girl smiling and aiming text

    How Acidic Drinks Affect Your Teeth: The Comprehensive Guide

    By VWB Blog
    Enhance your creativity and express yourself through music - start learning an instrument today.

    5 Things to Consider Before Picking up a New Instrument

    By VWB Blog
    1 5

    How To Decorate Small Spaces Efficiently

    By VWB Blog
    New Residential Plumber

    6 Considerations When Hiring A New Residential Plumber

    By VWB Blog
    SEO Tips For Car Dealers

    Maximizing Your Online Presence – SEO Tips For Car Dealers

    By VWB Blog
    Civil Registration Records

    Uncovering Your Irish Ancestry: A Guide to Historic Civil Registration Records

    By VWB Blog
  • Health
    Sissy Hypnotherapy image with doctor

    Sissy Hypnotherapy, What is it and how to explain ?

    By VWB Blog
    Factors that Affect the Final Cost of a Trisculpt Procedure

    Factors that Affect the Final Cost of a Trisculpt Procedure

    By VWB Blog
    aging parents

    How to Find the Best Care for Your Aging Parents

    By VWB Blog

    5 Benefits of Florastor Capsules  

    By VWB Blog

    A First-Timer’s Guide: Insights on Marijuana and Ways to Use

    By VWB Blog
    safe weight loss pills

    How to Choose Safe Weight Loss Pills

    By VWB Blog
  • Contact US
Reading: 3 Most Common Types of Bankruptcy
  • 🔥
  • Home Improvement
  • Health
  • Technology
  • Business
  • General News
  • Auto
  • Law
Font ResizerAa
VWB BlogVWB Blog
  • My Saves
  • My Interests
  • My Feed
  • History
Search
  • Pages
    • Home
    • Contact Us
    • Search Page
  • Personalized
    • My Feed
    • My Saves
    • My Interests
    • History
  • Categories
    • Technology
    • Travel
    • Health
    • Home Improvement
    • Technology
    • General News
    • Auto
    • Law
    • Lifestyle
    • Business
    • Celebrity
    • Education
    • Finance
    • Pet
Have an existing account? Sign In
Follow US
© 2024 VWB Blog. All Rights Reserved.
VWB Blog > Finance > 3 Most Common Types of Bankruptcy
Finance

3 Most Common Types of Bankruptcy

VWB Blog
Last updated: July 7, 2023 4:26 pm
VWB Blog
Share
SHARE

Are you struggling with heavy debt payments? Have you lost hope of ever paying off all those credit cards? Are you tired of the stress and anxiety that comes with the looming threat of a court summons? If so, bankruptcy may be the answer.

Contents
1. Chapter 7 Bankruptcy – The Fresh Start2. Chapter 13 Bankruptcy – The Repayment Plan3. Chapter 11 Bankruptcy – The Business SolutionUnderstand the Different Types of Bankruptcy Today

Don’t worry. Declaring bankruptcy doesn’t mean you’re a bad person. For many families and businesses, bankruptcy is a smart decision. It’s a last-resort measure that can help you get your life back on track.

Ready to learn more about the most common types of bankruptcy? Keep reading.

1. Chapter 7 Bankruptcy – The Fresh Start

Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” is one of the most common types used by individuals in financial distress. When individual files for Chapter 7 bankruptcy, their non-exempt assets are sold or liquidated to repay their debts.

However, the debtor gets to keep certain exempt assets that are considered essential for their fresh start. The process starts by filing a petition with the bankruptcy court, detailing the following:

  • assets
  • liabilities
  • income
  • expenses

Once the court approves the petition, an automatic stay is initiated, halting all creditor actions, including collection calls and lawsuits. A court-appointed trustee takes charge of the liquidation process and distributes the proceeds among the creditors.

2. Chapter 13 Bankruptcy – The Repayment Plan

Chapter 13 bankruptcy, known as “reorganization bankruptcy,” is designed for individuals with a stable income who want to repay their debts over time. Unlike Chapter 7, Chapter 13 does not involve asset liquidation.

Instead, debtors propose a repayment plan spanning three to five years, which outlines how they intend to repay their creditors. To qualify for Chapter 13 bankruptcy, individuals must have:

  • steady income
  • unsecured debts (card bills and medical expenses)
  • must not exceed a certain limit

Once the court approves the repayment plan, debtors make regular payments to a bankruptcy trustee, who then distributes the funds to creditors as per the plan. At the end of the repayment period, any remaining eligible debts are discharged.

3. Chapter 11 Bankruptcy – The Business Solution

Chapter 11 bankruptcy, commonly known as “reorganization bankruptcy” for businesses, is a complex process mainly used by corporations, partnerships, and other business entities. It allows the business to continue its operations while restructuring its debts to become financially viable again.

Under Chapter 11, the business proposes a reorganization plan to the creditors, outlining how it intends to repay the debts and get back on track. The plan may involve the following:

  • renegotiating contracts
  • downsizing operations
  • seeking new investment

Once the creditors and the court approve the plan, the business operates under the supervision of the bankruptcy court to ensure compliance. Remember, when navigating through the bankruptcy process, it is important to enlist the expertise of a seasoned bankruptcy attorney from nahrganglaw.com. Their knowledge and guidance on the different types of bankruptcy will ensure a favorable outcome and provide you with the necessary support every step of the way.

Understand the Different Types of Bankruptcy Today

Bankruptcy is a complicated process. Having the right information is key to understanding the various types of bankruptcy and determining which one is the best fit. Consider consulting a bankruptcy lawyer to determine which type of bankruptcy best suits your individual needs. Don’t wait; take control of your financial situation today!

Looking for other informative articles? Check out the rest of our website today!

Favicon for VWBBlog.com
VWB Blog

Our mission is to provide readers with expert insights, practical advice, and the latest trends in business, technology, lifestyle, and more. We aim to inspire and empower our audience with high-quality articles that are both engaging and educational.

Share This Article
Twitter Email Copy Link Print
Previous Article dental care The Importance of Regular Dental Care
Next Article Laser Etching and Engraving Techniques Designing Eye-Catching Signs with Laser Etching and Engraving Techniques

Your Trusted Source for Accurate and Timely Updates!

Our commitment to accuracy, impartiality, and delivering breaking news as it happens has earned us the trust of a vast audience. Stay ahead with real-time updates on the latest events, trends.
FacebookLike
PinterestPin
YoutubeSubscribe

Popular Posts

How to Build an Online Presence for Your Company

Are you trying to figure out ways to spread the word about your small business?…

By VWB Blog

Corporate Gifting and its Benefits to the Company

Gifts are always precious things for the receivers either it is small or big. The…

By VWB Blog

The Most Common Types of Car Accident Injuries

Are you worried about the effect a car accident can have on your health? Car…

By VWB Blog
VWB Blog main Logo VWB Blog main Logo
Facebook Youtube Rss Medium

About US


VWB Blog offers insightful articles on business, tech, and lifestyle. Stay informed and inspired with our expert guides

Top Categories
  • Auto
  • Business
  • General News
  • Travel
  • Lifestyle
Usefull Links
  • Contact Us
  • Privacy Policy
  • About Us
  • Terms of Service
  • Disclaimer

© VWB Blog. All Rights Reserved.

© VWB Blog. All Rights Reserved.
Join Us!

Unlock exclusive content and insider information!

Be the first to know about exciting announcements, special discounts, and valuable insights.
Welcome Back!

Sign in to your account

Lost your password?