Before you file for bankruptcy, you should decide which type (or chapter) is the right one for you. Here is a brief description of each of the different types of bankruptcies:

Chapter 11 - Reorganizations

• The purpose of a chapter 11 bankruptcy is to allow a business a limited amount of time free from creditors collection efforts to restructure its finances so it may continue to operate in a normal fashion under a court approved "plan". Creditors of a business filing a chapter 11 vote on the plan, and the plan must be approved by the court. A business may choose to liquidate under this type of bankruptcy also.
• If a business obtains approval from the court for its plan, all pre-bankruptcy debts will be discharged. A business will not receive a discharge if it simply liquidates its assets under a plan.
• Advantages of a chapter 11 is that the business may retain control of its property during the bankruptcy and can deal with all of the debts.
Individual debtors may also choose to file a chapter 11; however, this type of bankruptcy is complicated and there may be advantages to filing under a different chapter. An individual should consult with an attorney before making the decision to file a chapter 11.
• Generally, you may file a chapter 11 petition anytime after a previous bankruptcy filing.