bankruptcy court records
By Paul Grabowicz · Updated Aug 11, 2011 ·
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Types of Bankruptcies
The two most common forms of bankruptcy are called Chapter 7 and Chapter 11.
Chapter 11
In a Chapter 11 filing, a person or company gets to temporarily suspend or reduce payments to creditors, while the person/company reorganizes their finances and comes up with a plan to repay the debts owed.
Chapter 7
In a Chapter 7 filing, a person or company is stating they can't pay off their existing debts and therefore must liquidate their assets.
In a Chapter 7 case, creditors usually only recover a percentage of what they are owed by the bankrupt person or company.
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