Here at the Donovan Law Office, we understand that there are times when difficult economic situations arise and filing for bankruptcy is necessary for financial relief. Below are the most common types of bankruptcies:
A trustee is appointed. Any non-exemptible property of value will be sold or turned into money to pay your creditors. You will be able to keep some personal items and possibly real estate depending on the law of the state where you live.
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.
This is used mostly for businesses. 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 unless the Judge decides that one is necessary; if a trustee is appointed, the trustee takes control of your business and property.