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Type Of Bankruptcy

There is more than 1 type of bankruptcy or insolvency. There are 6 different kinds of bankruptcy filings in the United States. Not all, however, are applicable to everyone in any situation. There are essentially 2 different divisions: business and non-business. Business bankruptcies consist of Chapter 2, Chapter 11 and Chapter 13. Non-business types of bankruptcies are Chapter 7, Chapter 11 and Chapter 13. There are also very specific kinds of bankruptcies. A bankruptcy of a municipality is filed under Chapter 9. A Chapter 12 bankruptcy is reserved for farm and fisher families. Before you can file under any of these type of bankruptcy, you must meet certain criteria. The details and particulars appear in the Bankruptcy Code. A bankruptcy attorney is the best way to discover which type of bankruptcy will serve your purposes.

Fast Facts

  • In 2009, there were 40,225 business and 949,002 non-business Chapter 7 bankruptcies.
  • There were 13,439 business and 1,306 non-business Chapter 11 bankruptcies in 2009 in the United States.

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