What Types of Bankruptcies Are Available? | Tom Orr Law

What Types of Bankruptcies Are Available?

What Types of Bankruptcies Are Available?

Many of my clients are not sure which type of bankruptcy to choose. This is understandable since the bankruptcy process can be confusing without proper guidance. There are four types of bankruptcy cases provided under the law:

Chapter 7 results in a discharge of most debts and allows people to have a fresh start. This is the most common type of bankruptcy. Immediately upon filing, creditors are prohibited from collecting their debts. The discharge is issued in about four months and permanently erases most debt.

Chapter 11 is known as “reorganization”, and is used by businesses and a few individual debtors whose debts are very large. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11. Many casinos in New Jersey have filed Chapter 11 bankruptcy.

Chapter 12 is a relatively new addition to bankruptcy laws. It allows “family farmers” and “family fisherman” to restructure their finances and avoid liquidation or foreclosure. The main difference between this and a Chapter 13 is that this form of bankruptcy provides additional benefits to debtors.

Chapter 13 is called a “debt adjustment”. It requires a debtor to put together a plan to erase dischargeable debts (like Chapter 7) and to catch up payments on debts that may not be erased. For example, Chapter 13 plans catch up delinquent payments on car loans, mortgages, and taxes.

You should consult with an experienced New Jersey bankruptcy attorney to protect your assets before filing. Contact me today to schedule a consultation to learn more about the bankruptcy process.


Hundreds of thousands of Americans, including consumers and business owners, file for bankruptcy each year. While many think this situation is the result of overspending, most cases are due to financial hardship such as job loss, costly medical bills, divorce, or a poor economy.


I’ve been practicing bankruptcy law in Burlington, New Jersey for over 33 years. With just one location, I can focus exclusively on helping my clients make their way not only through bankruptcy, but well past it. We will work together to explore all of your options and determine if bankruptcy is the right choice for you. The goal is to get you on the path to a new beginning.


If you’re losing sleep, feeling scared or even embarrassed, let’s talk. There is life after bankruptcy and it starts here. My offices are located in downtown Burlington, near the Riverline train stop. I provide Saturday and evening hours as needed. I offer payment arrangements to fit your budget. Contact my office today at ​​609-386-8700.


Start your path towards a new financial beginning. Contact our offices today!
Scroll to Top