Deciding to file for a bankruptcy is a big decision. Of course, when a person makes this decision, it is not the end of the important decision-making for them. In fact, it is often just the start. Many important decisions can arise during the course of pursuing bankruptcy protection.
One of the big decisions a person faces after deciding to pursue a bankruptcy is which type of bankruptcy to file for. Bankruptcy comes in multiple different types. Three of the most common types of bankruptcy are Chapter 7, Chapter 11 and Chapter 13. For general descriptions of these three types of bankruptcy, see our article on the topic.
These three types differ in many regards including:
- Their eligibility requirements.
- The processes associated with them.
- How discharges come about in them.
- What will happen with different sorts of assets in them.
- What sorts of situations they are best at dealing with.
- Their general pros and cons.
Thus, there are many different things for a person to take into account when deciding between these three main types of bankruptcy. This abundance of things to keep in mind is a very common thing when it comes to decisions regarding bankruptcy. Bankruptcy can be a very complex thing in which the various different decisions which come before a person have the potential to have some pretty big impacts. Thus, a person may want to have the guidance of a bankruptcy attorney when making bankruptcy-related decisions, such as decisions regarding what bankruptcy type to go with.