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Dale Orthner - Attorney at Law

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Can Bankruptcy Help Me?
When Do I Stop Paying?
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About Bankruptcy
Chapter 7
Chapter 7 Timeline
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Bankruptcy Petition
Means Test
Meeting of the Creditors
Chapter 13
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Life After Bankruptcy

About Bankruptcy

    Bankruptcy law consists of six different chapters under which individuals or organizations may file. A "chapter" refers to the section of federal law that provides the rules for how a bankruptcy case is to be decided. These six chapters are:

    Chapter 7: Liquidation for Individuals or Businesses

    Chapter 9: Municipal Bankruptcy

    Chapter 11: Reorganization for Individuals or Businesses

    Chapter 12: Reorganization for Family Farmers or


    Chapter 13: Reorganization for Individuals only

    Chapter 15: International or Ancillary Cases

    Of these, an individual may file for bankruptcy protection under one of four Chapters: 7, 11, 12, or 13.

    Chapter 7: Nearly all individuals file under this chapter.

    Chapter 11: Very expensive and creditors control the case

    Chapter 12: Can only be used by farmers or fisherman

    Chapter 13: Used by people who either do not qualify for,

                      or who have too much equity to lose by filing,

                      a Chapter 7 case, and/or who can benefit

                      best by some of the special features of

                      Chapter 13.

    Essentially, therefore, an individual's choice of bankruptcy is between Chapter 7 and 13. Since Chapter 13 is a repayment plan with many additional costs and risks (see the Chapter 13 page for more details), most people who qualify for Chapter 7 use that form of bankruptcy rather than Chapter 13.

    See the additional information provided about Chapter 7 cases and The Automatic Stay, and the important details provided about Exemptions, the Meeting of the Creditors, and the Means Test.

For a FREE, 1-hour consultation

with Dale Orthner, call:

(916) 588-5011

Dale Orthner
(916) 588-5011