Less Common Bankruptcy Chapters
Many people are not aware of the existence of bankruptcy options other than the most common, such being Chapters 7 and 13.
Chapter 11 is the third most common type of bankruptcy. Chapter 11 cases can be extremely complex and are typically used by corporations or, in limited cases, individuals whose situation does not fit into a more standard Chapter 7 or Chapter 13 proceeding.
There is also a Chapter 9 bankruptcy available to municipalities. A number of municipalities, most notably Detroit, Michigan, have filed Chapter 9 Bankruptcy in the recent past.
A Chapter 12 Bankruptcy is available for family farmers or fisherman. Obviously, in the Western District of North Carolina these bankruptcies are few and far between.
Finally, the most unusual type of bankruptcy is Chapter 15, which is available to entities that are subject to a foreign proceeding – in other words, corporations with national business transactions. Needless to say, no attorney that I know of in the Western District of North Carolina has ever had occasion to be involved in a Chapter 15 Bankruptcy.
This article is for information purposes only and is not to be considered or substituted as legal advice. The information in this article is based on North Carolina state laws in effect at the time of posting.