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There are several types of bankruptcy in the
United States. Bankruptcy proceedings under
chapters 11 , 12 , and 13 allow for the
reorganization of a debtor's debts allowing him/her
to use future earnings to pay off creditors. Under
chapter 7, 12, 13, and some 11 proceedings, a court
appointed trustee supervises the liquidation of a
debtor's assets to satisfy creditors. Chapter 11
bankruptcy proceedings are usually used by large
corporations and are more complicated than those
under chapter 13. Bankruptcy proceedings may
be voluntarily instituted by the debtor or, in some
cases, involuntarily instituted by ones creditors.
Chapter 13 and chapter 12 bankruptcy are very
similar. However, the latter is only available
to farmers and ranchers and allows for a larger amount
of debt. And, chapter 9 bankruptcy is available
to municipalities who cannot meet their financial
obligations.
Under recent changes to bankruptcy laws, debtors
filing for chapter 7, liquidation, bankruptcy must
wait eight years between separate filings. It
also stipulates that mandatory counseling classes be
attended after the required online filing.
Prior to filing for bankruptcy bill collectors may
not contact you at unreasonable hours at home and may
not disclose your financial situation to your
employer, friends or relatives. They may not
contact you at work either if they know your employer
disapproves of such contact. If you have
retained an attorney they may only contact you through
your attorney.
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