People often ask me about their privacy when they are considering filing for bankruptcy. Naturally enough, they wonder if their family and friends, or their co-workers, will know about their private affairs. Sometimes people wonder if one type of bankruptcy is more private than another.
Chapter 13 Bankruptcy is a common and effective means of filing for bankruptcy for individuals — as opposed to businesses. I like to say that it is in many ways a form of debt consolidation. It is known as an “individual reorganization,” and for good reason, because it allows you to reorganize your finances, consolidate your debt and then pay back some of it over time.
There are actually several types of bankruptcies, each with their pluses and minuses. Individual consumers are primarily eligible to file for Chapter 7 or Chapter 13 bankruptcy, and occasionally for Chapter 11 bankruptcy. There is also another option called Chapter 12 bankruptcy, but it is rare in Los Angeles. It’s appropriate for farmers and fishermen.
Part of my job is determining whether a person qualifies for Chapter 7 or Chapter 13 bankruptcy. The first thing you need to do is come to my office for a meeting. We offer free in-person consultation, and we also offer free phone consultations. Deciding which type of bankruptcy is right for you is really determined on a case-by-case basis.