• Free Bankruptcy

    Evaluation

    Start on the road to financial freedom; contact us today for a free evaluation.

    Start Now
  • Read What Our

    Clients Are Saying

    Our results speak for themselves; see what our clients are saying.

    Read More
  • Seven Convenient

    Locations

    We have many locations to serve you, click here to find your nearest location.

    Contact Us
  • Meet Our

    Team

    Our team has 30+ years of experience. Get an experienced team on your side.

    Click Here

What Are the Most Common Types of Bankruptcy?

The most commonly utilized types of bankruptcy include Chapter 7 and Chapter 13. Chapter 7 is known as a liquidation bankruptcy. If you choose this type, you’ll forfeit your non-exempt assets, which the trustee will then sell to pay off a portion of your debt. The remainder of your debt is discharged. If you own substantial assets, such as a home, and a regular income, your bankruptcy attorney may advise you to file a petition for Chapter 13 bankruptcy. Also known as debt reorganization, this type of filing restructures debt into a manageable payment plan. Debts that are not paid at the conclusion of the payment plan are discharged.

Bankrupt businessman

There are other types of bankruptcy, including Chapter 12, which is appropriate for family farmers. The process of debt discharge under Chapter 12 is much like that of Chapter 13. Businesses most often file under Chapter 11, which enables them to keep some assets while adhering to a debt payment plan. Municipalities may reorganize their debt under Chapter 9.

If you have any questions about what type of bankruptcy might be best for you, contact the veteran bankruptcy attorneys at Cutler & Associates, Ltd. Chicago-area residents can reach our locations in Aurora or Schaumburg at (847) 505-0380.

FREE Bankruptcy Evaluation

Fill out the form below and one of our experienced attorneys will get in touch with you immediately.