Consumer Bankruptcy Filings Increase 17 Percent in August
Consumer Bankruptcy Filings Increase 17 Percent in August
Contact: John Hartgen
703-739-0800
[email protected]
CONSUMER BANKRUPTCY FILINGS INCREASE 17 PERCENT IN AUGUST
September 6, 2007,
Alexandria,
'The uptick in August
bankruptcies continues the trend we've seen all year,' observed
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*Definitions from
Bankruptcy Overview: Issues, Law and Policy, by the American
Bankruptcy Institute.
Chapter 7 of the Bankruptcy Code is available to both
individual and business debtors. Its purpose is to achieve a fair
distribution to creditors of the debtor’s available non-exempt
property. Unsecured debts not reaffirmed are discharged, providing
a fresh financial start.
Chapter 11 of the Bankruptcy Code is available for both business and consumer debtors. Its purpose is to rehabilitate a business as a going concern or reorganize an individual’s finances through a court-approved reorganization plan.
Chapter 12 of the Bankruptcy Code is designed to give special debt relief to a family farmer with regular income from farming.
Chapter 13 of the Bankruptcy Code is available for an individual with regular income whose debts do not exceed specific amounts; it is typically used to budget some of the debtor’s future earnings under a plan through which unsecured creditors are paid in whole or in part.