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Chapter 7 of the Bankruptcy Code is also referred as the “Straight Bankruptcy” or “Simple Bankruptcy”. It is the most preferred of the six available types because it is the most simple and also the fastest to execute. It allows a debtor to eliminate almost all of his debts in just one or two quarters.
Almost all bankruptcy cases not filed under Chapter 7 are filled under Chapter 13. The latter is also referred to as “Reorganization Bankruptcy” and it is often the optimal choice if the debtor has to many non-exempt properties to lose if he chooses the former.
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