What type of bankruptcy are individuals eligible for and what are the requirements of each?
Individuals are eligible to file bankruptcy under chapter 7, 11, 12 or 13. Chapter 7 — Liquidation — provides for the liquidation of a debtor’s assets by a trustee to raise cash to pay off creditors’ claims. The stages in a chapter 7 case are discussed below. Individual consumer debtors are subject to eligibility requirements, discussed below. Spouses can file a joint-case. The 2005 Amendments to the Bankruptcy Case have increased the complexity of individual consumer chapter 7 cases (discussed further below). Chapter 11 – Reorganization – provides for reorganization of a debtor under a reorganization plan that is voted on by the debtor’s creditors. Chapter 11 is typically not suitable for individual or consumer debtors unless they have a high net worth or high income. The stages in a chapter 11 case are discussed below. Chapter 12 – Family Farmer or Fisherman Debt Adjustment – provides for adjustment of debts of a family farmer or fisherman with regular income and subject to certain d
Individuals are eligible to file bankruptcy under chapter 7, 11, 12 or 13. Chapter 7 — Liquidation — provides for the liquidation of a debtor’s assets by a trustee to raise cash to pay off creditors’ claims. The stages in a chapter 7 case are discussed below. Individual consumer debtors are subject to eligibility requirements, discussed below. Spouses can file a joint-case. The 2005 Amendments to the Bankruptcy Case have increased the complexity of individual consumer chapter 7 cases (discussed further below). Chapter 11 – Reorganization – provides for reorganization of a debtor under a reorganization plan that is voted on by the debtor’s creditors. Chapter 11 is typically not suitable for individual or consumer debtors unless they have a high net worth or high income. The stages in a chapter 11 case are discussed below. Chapter 12 – Family Farmer or Fisherman Debt Adjustment – provides for adjustment of debts of a family farmer or fisherman with regular income and subject to certain
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