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Commonly Asked Questions about Legal Bankruptcy Forms

The most common types of bankruptcy are chapter 7, which are liquidating bankruptcy, and chapter 13 cases, often used by individuals who want to catch up on past due mortgage or car loan payments and keep their assets.
Key Elements to Include in the Letter. A bankruptcy letter should be clear and concise and provide all the necessary information. It should include the name and contact information of the debtor, the date of the filing, the court where the bankruptcy was filed, the case number, and the type of bankruptcy filed.
Chapter 11 can be done by almost any individual or business, with no specific debt-level limits and no required income. Chapter 13 is reserved for individuals with stable incomes, while also having specific debt limits.
Though there are a million possible reasons why people might file bankruptcy, the following contributing factors are commonly cited. Loss of Income. Medical Expenses. Unaffordable Mortgage. Student Loans. Overwhelming Debt. Helping Friends or Relatives. Divorce.
1. A bankruptcy stays on your credit report for up to 10 years. While this is a negative aspect of Chapter 7, you can begin rebuilding your credit immediately.
Three Types of Bankruptcy. There are three types of bankruptcy, personal, small business and corporate. But despite being designated as their own type, personal and small business bankruptcies are essentially the same thing.