Depending upon your financial situation, you can choose the kind of bankruptcy that best meets your needs.

Chapter 7: A Trustee is appointed by the Federal Bankruptcy Court to take over any of your property which is not exempt or protected from seizure. Any property of value will be sold or turned into money to pay your creditors. Your are normally able to keep many personal items, household goods, furniture, motor vehicles, retirement benefits, and your home, depending on the bankruptcy law in the state in which you live. A Chapter 7 proceeding typically lasts 90 to 120 days.

Chapter 13 : You can usually keep your property, but you must earn wages or have some other source of regular income and you must agree to pay part of your income to your creditors. The Court must approve your repayment plan and your budget. A Trustee is appointed and will collect the payments from you, pay your creditors, and make sure you live up to the terms of your repayment plan. Only an individual can file for Chapter 13, not corporations or partnerships. Chapter 13 is primarily used for individuals who are behind on their car payments, house payments, child support, or Federal Income Taxes and need a 3 to 5 year period to repay the missed payments. The debt limits for a Chapter 13 are $307,675.00 in unsecured debts and $922,975.00 for secured debts.
 
Chapter 12: Like a Chapter 13 but it is only for family farmers and fishermen.

Chapter 11: This is used mostly by businesses, but also for individuals who do not meet the financial restrictions of Chapter 13 and need to reorganize. In Chapter 11 you may continue to operate your business, but your creditors and the Court must approve a plan to repay your debts. There is no Trustee appointed unless the Judge decides that one is necessary. If a Trustee is appointed then the Trustee takes control of your business and property. A Chapter 11 proceeding typically lasts 9 - 12 months with a repayment of a percentage of debt, upon plan approval, of up to 5 years.

This information is general information only and is not intended to be legal advice. You are advised to seek the services of an experienced bankruptcy lawyer for legal advice about your specific situation.