bankruptcy_type

Bankruptcy Type

The bankruptcy chapter of the borrower.

chapter_7

Chapter 7 of the Bankruptcy Code provides for “liquidation” - the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors.

chapter_9

Chapter 9 of the Bankruptcy Code provides for reorganization of municipalities, which includes cities and towns, as well as villages, counties, taxing districts, municipal utilities, and school districts.

chapter_11

Chapter 11 of the Bankruptcy Code provides for reorganization, usually involving a corporation or partnership. 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 also can seek relief in Chapter 11.

chapter_12

Chapter 12 of the Bankruptcy Code provides for adjustment of debts of a “family farmer,” or a “family fisherman” as those terms are defined in the U.S. Bankruptcy Code.

chapter_13

Chapter 13 of the Bankruptcy Code provides for adjustment of debts of an individual with regular income. Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.

other

Use this when the customer is understood to be bankrupt but where the exact bankruptcy chapter is unknown or does not meet another definition within the taxonomy.