You've probably heard bankruptcy being referred to in terms of chapters. The reason for that terminology goes back to the bankruptcy code, which is a book that lays out the details of those chapters of bankruptcy. For example, if you open up the bankruptcy code, you might flip to any of these commonly filed chapters of bankruptcy:
Chapter 7, which is a type of bankruptcy you, me, or any other individual can file.
Chapter 9, which is for municipal governments. For instance, our own Jefferson County, Alabama filed bankruptcy in the past.
Chapter 11, which is for large corporations. As an example, K-Mart and GM are corporations that Donald Trump has filed bankruptcy for previously.
Chapter 12, which is for farmers.
Chapter 13, which, like Chapter 7, is for individuals in need of serious debt relief.
At my law firm, we focus on Chapters 7 and 13 bankruptcy because they are the most common chapters that help the individuals and families in our area. While Chapter 7 gives our clients the chance to eliminate their debt through liquidation, Chapter 13 allows them to restructure their debt and make realistic payments while holding on to their most important pieces of property. If you have questions about either chapter of the bankruptcy code, or if you're ready to enlist the help of a Huntsville bankruptcy lawyer, please don't hesitate to call Jeffrey B. Irby, P.C.