When you consider filing bankruptcy in Georgia, you may think there is only one type of bankruptcy. Often you just hear people saying they are going to file bankruptcy, using it as a general term. Actually, there are multiple types of bankruptcy. They are called chapters and are numbered. For example, you may file chapter 7 bankruptcy. The chapter you file depends on your situation.
According to the U.S. Courts, the different chapters of bankruptcy are for different types of filers. You choose the type of bankruptcy for your situation. It is important to choose the right type as the court will dismiss your case if you file for the wrong chapter. For example, you would file chapter 15 if you need to file with someone who is in another country because this is the chapter for parties located in more than one country. Public organizations, such as schools, taxing districts and towns, file Chapter 9.
If you are filing for yourself or a business, typically, you will file Chapter 7 or 13. Chapter 7 allows you to eliminate your debt. Upon the finalization of your bankruptcy, you no longer have to pay any debts discharged in your case. Chapter 13 is a repayment plan. The court creates a plan for you to repay part of all of your debt. You may also file a chapter 15. This is for farmers or fishermen only.
Regardless of which chapter you file, all bankruptcies go through federal court. Each state has districts which house the federal bankruptcy court. All bankruptcies seek to help the filer eliminate debt and stop debt-related issues. This information is for educational purposes only. It is not legal advice.