There are several types of bankruptcy and bankruptcy law, including Chapter 7, Chapter 11 bankruptcy and Chapter 13 bankruptcy. Chapter 7 and Chapter 13 bankruptcy are utilized mostly by individuals, while Chapter 11 is a type of bankruptcy generally utilized by companies or businesses. Obtaining all the information you can about the bankruptcy process is essential before you make any decisions regarding your debt and personal finances, because the bankruptcy process cannot be easily undone.

Personal Bankruptcy

Also known as Consumer Bankruptcy, Personal Bankruptcy pertains to individuals. An individual may elect to file personal bankruptcy to resolve what may be a hopeless financial situation they have found themselves in, or to delay debt-collection for a period of time in order to rehabilitate their finances. Personal Bankruptcy generally takes one of two forms: Chapter 7 Bankruptcy and Chapter 13 Bankruptcy. Chapter 7 Bankruptcy is a way for an individual debtor to get a "Fresh Start" and rid themselves of their debts. Chapter 7:  This is generally called a "Straight Bankruptcy" or "Liquidation."  It is by far the most favorable because you can enter into it and discharge all or most of your unsecured debt. That means you will not have to pay any of it back. However, there is a specific criterion that must be met in order to qualify for Chapter 7 Bankruptcy. The principal advantages of Chapter 7 are that the case is usually completed within three months, generally only one court appearance is required, and you emerge without any future obligations on the discharged debts.

Chapter 13:  This type of case is also referred to as a "Repayment."  It is often used to catch up on past due mortgage or car loan payments, and can address debts that would not be dischargeable in a Chapter 7 plan.  A Chapter 13 Plan must be proposed to pay all or part of the debts from future income over a period of time ranging from three to five years. Once approved, the matter is settled, even if your creditors were not willing to work with you. If you make the payments as required, you will not have to surrender property to the trustee.

Business Bankruptcy

Any formalized entity of business can file for Chapter 11 bankruptcy in accordance to United States Bankruptcy Code Title 11, Chapter 11 and under the terms of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

Included in the entities able to reorganize and restructure under Chapter 11 bankruptcy include:

• Sole Proprietorships

• Partnerships

• Limited Liability Partnerships

• Limited Liability Corporations

• Corporations

• Co-operatives and Non-Profits

When utilizing a Chapter 11 restructuring, companies face the prospect of continuing business in light of current debt obligations. For executives and employees, the possibility of maintaining jobs, an income source, and retaining all assets used in producing this income are all retained. Furthermore, companies have been known to emerge from Chapter 11 bankruptcy and regain full control of their enterprise once again rather than full liquidating their assets. A bankruptcy court will supervise a company under Chapter 11 bankruptcy, manage the organizations debt, and contract obligations. Under the guidance of federal law, bankruptcy courts can discharge certain debts and contractual obligations in certain circumstances. In other instances, creditors will entirely take over a company in the event the organization's debts outweigh the current assets.Under the mediation of the bankruptcy courts, creditors and debtor companies meet to discuss plans for reorganization and restructure. Typically, a debtor company has a specific period to offer a plan of reorganization, which will include methods to satisfy existing debts, cuts in expenditures, and potential incomes. Creditors will then vote to agree or disagree on the plan, or if no plan is presented, creditors have the opportunity to present their own agenda. The court will decide whether each party is receiving treatment in the fair and equitable interest of resolving the matter at hand.

He has been an instructor at New York Paralegal School, New York, New York. His professional affiliations include the Empire State Mortgage Bankers Association, New York County Lawyer's Associations, and Phi Delta Legal Fraternity.

Mr. Green has also been a licensed NYS Real Estate broker and Mortgage Broker.