Type of Bankruptcy You Should File

Type of Bankruptcy
You Should File

Bankruptcy is a court process through which debtors (individuals or businesses) can discharge or restructure their debt. There are three main types of bankruptcy – Chapter 7, Chapter 11, and Chapter 13. While these each have their own rules, they all have one goal in common – providing reasonable and manageable debt relief.

At The Law Office of Erika Luna, one of the most common questions we receive is, “what type of bankruptcy should I file?” The answer to that question depends on the facts of each individual who asks.

Chapter 7

Chapter 7 bankruptcy is a common choice for individuals and businesses who want to use their assets to help them pay their debts. Chapter 7 is not a repayment plan. Instead, you liquidate (sell) assets in order to pay back your creditors. With Chapter 7, your assets will be categorized as exempt or non-exempt. Exempt assets cannot be sold as a means of paying creditors.

Chapter 11

Chapter 11 bankruptcy is most commonly filed by businesses. During Chapter 11, your business can stay open and active. You have the ability to restructure your debt and assets and establish a plan to pay your creditors over time. Chapter 11 is most useful for businesses or corporations that have a healthy income and need help in restructuring their business finances.

Chapter 13

Chapter 13 bankruptcy reorganizes your debt and establishes a payment plan. During the repayment plan, you pay back a portion of your debts, and any debt remaining is discharged. Chapter 13 is most often filed by individuals who want to pay a part of their debt but need a flexible payment arrangement. Chapter 13 does not require you to sell any assets in order to pay your creditors.

Which Type of Bankruptcy
is Right for You?

The best way to determine which type of bankruptcy may be right for you is to contact a bankruptcy attorney. At The Law Office of Erika Luna, our bankruptcy attorney has been helping clients find debt relief through bankruptcy for more than a decade. She takes a compassionate and understanding approach to bankruptcy that allows her clients to stay focused on their dreams of financial freedom.

To our clients and community:

The Law Office of Erika Luna is committed to maintaining our employees’ safety and well-being and helping our clients do the same.


While we are closely monitoring the impact of the Coronavirus on our community, we want you to know that our telephone lines are open, and our staff is available to discuss your current case or to consult you on a potential one. 

We are currently offering a contactless bankruptcy process so people can file from the comfort of their homes. The entire process can be completed online and over phone/zoom calls. Clients can sign all paperwork electronically and attend the 341a hearing by phone. 

To arrange any in-person meetings, please call us for an appointment per the firm’s availability. We are taking substantial precautions to meet and exceed the CDC’s and state government’s guidelines for maximum protection. Please also note that your case, whether current or new, can be entirely managed remotely.

We hope you and your loved ones are safe and healthy during these challenging times. Thank you.

The Law Office of Erika Luna

A nuestros clientes y comunidad:

Nuestra firma está comprometida a mantener la seguridad y el bienestar de nuestros empleados y a ayudar a nuestros clientes a hacer lo mismo.

Mientras estamos monitoreando de cerca el impacto que el Coronavirus está teniendo en nuestra comunidad, queremos que sepa que las líneas telefónicas de nuestra oficina están abiertas y que nuestro personal está disponible para hablar sobre su caso o consultar sobre un caso posible.

Actualmente estamos ofreciendo un proceso de bancarrota sin contacto para que las personas puedan declararse desde la comodidad de sus hogares. Todo el proceso se puede completar en línea y por teléfono / llamadas con zoom. Los clientes pueden firmar todos los documentos electrónicamente y asistir a la audiencia 341a por teléfono.

Llámenos para solicitar una cita según la disponibilidad de la empresa. Estamos tomando precauciones importantes con nuestra oficina para cumplir y superar las recomendaciones de la CDC y del gobierno estatal para la máxima protección. Tenga en cuenta también que su caso, ya sea actual o nuevo, se puede manejar por completo de forma remota.

Esperamos que usted y sus seres queridos estén seguros y saludables durante estos tiempos difíciles. Gracias.

La oficina legal de Erika Luna