Bankruptcy Law

	Overview		Chapter 7		Chapter 11		Chapter 12		Chapter 13

Chapter 11 bankruptcy is typically used for business bankruptcies and restructuring. It allows businesses to reorganize themselves, giving them an opportunity to restructure debt and get out of certain leases and contracts. Normally, a business is allowed to continue to operate while it is in Chapter 11 under the supervision of the Bankruptcy Court and its appointees.

Chapter 12 bankruptcy allows farmers with real estate debts to pay off the debts from the profits generated by future crops.

Chapter 13 bankruptcy is a type of provision in which consumers work out a periodic payment plans with their creditors to pay off all or most of their debts. One of the more important benefits of Chapter 13 is that the debtor generally can continue to live in their home as long as he/she complies with the terms of the Chapter 13 agreement. The disadvantage of this is that debts can linger for years.