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 13 - Individual Debt Adjustment

• The purpose of a chapter 13 bankruptcy is to let an individual debtor with a regular income pay back debts using their income and enabling a debtor to keep any assets they have. A person who operates a small business as a sole proprietor may also file under this chapter.

• Under a chapter 13 bankruptcy filing, a debtor must promptly file a repayment plan and get the court's approval of the plan. Any creditor may object to the plan. The debtor, along with the appointed trustee, must work out any objections to the plan before the court will approve it. The typical repayment time of chapter 13 plan is 3 to 5 years. The debtor makes regular payments to the trustee and the trustee then distributes these monies to creditors according to the terms of the plan.

• After completion of a plan, the debts listed in the bankruptcy are discharged (again with some exceptions) and the debtor is no longer obligated to pay them.

• Generally, a chapter 13 may be filed at any time, even if a debtor has filed before under a different chapter.