There are all kinds of reasons to perform a bankruptcy search. In order to search successfully, you need to determine what type of bankruptcy you are searching for.
If you are anything like me, then you probably didn’t know there were different types of bankruptcy cases. In fact, until I started searching, I thought all bankruptcy cases were the same. However, you can learn from my search and make your search faster and easier.
Bankruptcy Cases Come in 3 Types
All bankruptcy cases must come under three general categories. They are then filed and settled in a bankruptcy court.
Chapter 7 Bankruptcy
Chapter 7 is known as “liquidation.” Here the person who owes the money (debtor) sells off all their stuff. This is done under the watchful eye of the court. Everything is sold except for exempted items to earn money to pay off the creditors. In these cases, the debtor is freed from some debts. However, certain income restrictions apply.
Chapter 13 Bankruptcy
In these cases, the debtor must have an income because they will be required to make payments to the creditors. In most cases, the payment plans last 3 to 5 years. The good part about Chapter 13 is you get to keep your stuff. However, you are not discharged of your debt.
Chapter 11 Bankruptcy
This type is known as “reorganization.” Generally, this is for commercial entities It is called a “reorganization” because along with the debt being paid there is normally a reorganization of control of the company. Here contracts can be terminated and a payment plan is put into action. Some of the debt may be discharged.
Other Types of Bankruptcy
The three cases above are your most common. However, there are other ways to file bankruptcy that is less common. For example, there is Chapter 12. It is similar to Chapter 13 but it is more for families who need to run the business after filing.
Searching for Bankruptcy Cases
When you are sifting through the bankruptcy cases to find the one you are looking for, it helps to know what type of case filed. This way you can narrow down your search and make your results more specific.
Once you know the type of case you are looking for, you need to find a way to search for the case. You can search the National Archives. They offer cases from 1940-1998 and you search by state. However, searching through online databases is the easiest method. Research the different resources available to you for bankruptcy searches.
As a Leading Resource for Do it Yourself Detective Work, we’ll Help You Find the Truth. Discover More Tips and Strategies on How You can Conduct a Bankruptcy Search Quickly and Easily.
There are no posts related to How to Make Your Bankruptcy Search Quicker and Easier .
Leave a Reply