Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” is a legal process designed to help individuals and businesses eliminate most of their unsecured debts and achieve a fresh financial start. It is an effective tool for those who are overwhelmed by debt and lack the means to repay it.

Chapter 11 bankruptcy, often referred to as “reorganization bankruptcy,” is a legal tool designed primarily for businesses but also available to individuals with significant debts and assets. It allows debtors to restructure their financial obligations while maintaining control of their operations or property. This process provides a pathway for financial recovery and long-term viability.

Chapter 13 bankruptcy, often referred to as a “wage earner’s plan,” provides individuals with regular income an opportunity to restructure and repay their debts over a three- to five-year period. This option is particularly beneficial for those who want to keep their assets, such as a home or car, while addressing their financial challenges.