Types of Bankruptcy

Chapter 7 – This can be filed by individuals, married couples, corporations, and partnerships. It involves the appointment of a trustee. You probably qualify for a chapter 7 bankruptcy if your family income is less than the median annual income in Michigan for a family of your size.

Chapter 13 – This bankruptcy case is a proceeding under federal law that allows a person to repay all or part of his or her debts under the supervision and protection of a trustee and the bankruptcy court.

Chapter 11 - This is a reorganization of debts for businesses under which the company is allowed to continue operations. An alternative is a receivership, in which a court-appointed representative takes possession of and preserves property that is under pending litigation.

Chapter 12 - This is bankruptcy for family farmers and fishermen who are facing financial difficulties, in which they can propose a plan to pay back their debts over a period (usually 3-5 years).