Different Types Of Bankruptcy Lawyer or Attorney, there are two kinds of bankruptcy lawyers. Some lawyers focus on working with individuals filing Chapter 7 and Chapter 13 cases. We call those consumer bankruptcy lawyers. Other lawyers work primarily with businesses to file Chapter 11 reorganization cases and Chapter 7 cases.
Chapter 7 bankruptcy is for individuals, but businesses may also file under Chapter 7. Chapter 7 wipes out most debt. Generally, all of the assets are sold and the money is used to pay off the creditors.
Chapter 13 bankruptcy is generally for individuals. Chapter 13 allows the debtor to keep certain parts of his or her estate (such as one house and one vehicle) and is a re-organization of debt. The trustee assigned to the case reviews the debtor’s financial affidavit and sets up a payment plan. The debtor pays the payments to the bankruptcy court. The court then pays the creditors a portion of what they are owed.
Chapter 11 bankruptcy is generally used for businesses that want to reorganize. Chapter 11 allows a company to keep its doors open so it can continue to do business.
Chapter 9 bankruptcy is used for the adjustment of debts of a municipality. Individual debtors do not file under Chapter 9. Chapter 12 bankruptcy is used for the adjustment of debts of a family farmer or fisherman with a regular annual income.
Chapter 15 bankruptcy is used for ancillary and cross-border bankruptcies.
What Kind of Lawyer Handles Bankruptcy
National Association of Consumer Bankruptcy Attorneys: The NACBA is a professional trade association for bankruptcy attorneys who represent individuals.
Difference Between Chapter 7 11 and Chapter 13
Chapter 7 is open to almost any individual or business without any specific income or debt-level limits. Chapter 13 requires you to have a stable income, has specific debt limits and is reserved for individuals or, in limited cases, sole proprietorship.