Bankruptcy Basics

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What is bankruptcy?

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Bankruptcy is a legal process for individuals or businesses unable to repay their debts, providing relief from some or all of their debts.

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What are the different types of bankruptcy? Chapter 15, Chapter 7, Chapter 11, Chapter 13, Chapter 9, Chapter 17

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Chapter 7, Chapter 11, Chapter 13

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What is the role of a bankruptcy trustee?

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Overseeing the bankruptcy process, managing debtor's assets, and distributing assets to creditors.

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What is the means test in bankruptcy?

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Calculation used to determine if a debtor's income qualifies for Chapter 7 bankruptcy.

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What is the automatic stay in bankruptcy?

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A legal provision that halts most actions by creditors to collect debts from a debtor who has declared bankruptcy.

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What are exempt assets in bankruptcy?

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Assets that are protected from being liquidated to pay off debts.

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What is Chapter 7 bankruptcy?

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Chapter 7 bankruptcy is a legal process that allows individuals and businesses to eliminate most of their debts by liquidating assets.

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What is Chapter 13 bankruptcy?

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Chapter 13 bankruptcy is a legal process that allows individuals with a regular income to develop a plan to repay all or part of their debts.

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What is the difference between Chapter 7 and Chapter 13 bankruptcy?

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Chapter 7 involves liquidating assets, Chapter 13 involves a repayment plan.

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What are the consequences of filing for bankruptcy?

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The consequences of filing for bankruptcy include a lower credit score, difficulty securing loans, loss of assets, and potential damage to reputation.