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postheadericon Bankruptcy - Basic Information

The United States Constitution gives Congress the power to regulate bankruptcy.  Bankruptcy is a very complicated process, involving federal, state and international laws that are constantly changing.

Consumers who are struggling with debt have four options in seeking bankruptcy protection. These options are described in chapters of the U.S. Code.  They are:

  • Chapter 7 -  This is usually the best option for clients who don't have equity in homes or other property.  Most of our clients who need bankruptcy protection file Chapter 7 cases.

  • Chapter 11 - This type of bankruptcy is usually best for businesses that need to reorganize.  Very few people file these types of cases.
  • Chapter 12 -  This chapter is used by farmers and fishermen.
  • Chapter 13 - This chapter is usually used by wage earners to protect home equity.  We file these cases for clients who are behind in their mortgages or car payments, or who aren't eligible for Chapter 7 bankruptcy protection.

For more detailed information, please read our Questions & Answers page or even better, call or This e-mail address is being protected from spambots. You need JavaScript enabled to view it our office to schedule a free appointment to get the information you need in your case to get a fresh start in your finances.