Chapter 7 “Fresh Start or Straight” Bankruptcy”
Chapter 7 bankruptcy is the type most commonly filed in the United States. Called a ‘fresh start’ or ‘straight’ or ‘liquation’ bankruptcy because it’s designed to wipe out your general unsecured debt (usually credit cards and medical bills). Chapter 7 is the fastest way to discharge debt while keeping your house, car and retirement savings.
Chapter 13. “Reorganization” Bankruptcy”
Chapter 13 bankruptcy is a financial reorganization designed for people who can afford to make payments and get caught up on missed mortgage payments, car payments, child support, etc.
Chapter 11 “Reorganization”
Chapter 11 is most often used by businesses but it can help individuals who may not qualify for Chapter 13. Chapter 11 allows a business to stay open while continuing to pay their creditors.
Filing bankruptcy can be a path to a new beginning for good people going through a bad financial time. If you have questions, call Curtis, Casteel & Palmer, PLLC for a free consultation and the most trusted bankruptcy advice in Snohomish and King Counties.