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What types of bankruptcies are there and which one is right for me?
There are two types of individual bankruptcies, a Chapter 7 and a Chapter 13. They are very similar in the amount of information you must disclose in your bankruptcy petition,
but there are some differences since each type reflects different debtor goals.
In both bankruptcy types, the debtor files a bankruptcy Petition with the Federal Bankruptcy Court located in the district where the debtor has lived for at
least six months or where a significant amount of his or her assets is located. The Petition sets forth all of the debtor's assets (both real property and personal
property and it?s value), a list of all creditors and the amounts owed indicating whether that creditor is secured (like a mortgage company or a bank that financed
your car purchase), unsecured or has some priority status (e.g. taxes owed to governmental agencies, claims by spouses in divorce actions or claims by employees for
wages, commissions, or benefits), a complete statement of your income (along with total gross income for the previous two years) and a statement of itemized regular
monthly living expenses.
About 30 to 45 days after the Petition is filed in bankruptcy court, the debtor meets with a trustee, who is an individual appointed by the federal government to
oversee the debtor's bankruptcy on behalf of the creditors. He or she will review your Petition with you and verify that all of the information contained in the
Petition is accurate. What happens beyond that point depends upon whether a Chapter 7 or a Chapter 13 has been filed.
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