1. SINGLE SURVIVAL FAMILY AND CONSUMER SCIENCES MRS. SWOPE
BANKRUPTCY
SINGLE SURVIVAL
FAMILY AND CONSUMER SCIENCES
MRS. SWOPE

2. CHAPTER 7 Often called straight bankruptcy or liquidation
All unprotected assets are sold to repay the debts
Stays on a person’s credit report 10 years
Debts that can’t be repaid are dismissed.
Exceptions: child support, alimony, student loans, and debts made within 40 days of filing a Chp. 7.

3. CHAPTER 11
Form of bankruptcy that allows business owners to file a plan for repayment
Allows business to remain open, keep inventory, and make business work.
Stays on credit report up to 10 years

4. CHAPTER 13 Individual files a repayment plan with the court
Assets are not usually repossessed.
Individual makes prompt, regular payments to reduce debt within 5-7 years
Stays on credit report 7 years.