Chapter 7 Bankruptcy
To qualify for relief under chapter 7 bankruptcy, the debtor may be an individual, a partnership, a corporation, or another business entity. Chapter 7 bankruptcy is a form of asset liquidation, where a trustee is appointed to assist with the sale of assets to repay creditors with a percentage of the proceeds. Other debts may be discharged or forgiven. Debts that may not be discharged during a chapter 7 bankruptcy in Utah include student loans, back taxes, and alimony or child support arrears.

Chapter 11 Bankruptcy
Chapter 11 is typically used to reorganize a business, which may be a corporation, partnership, or sole proprietorship. Corporations exist separate and apart from their owners, the stockholders, so chapter 11 filings do not put the personal assets of the stockholders at risk — other than the value of their investment in the company’s stock. Partnerships, like corporations, exist separate and apart from their partners. However, during a chapter 11 bankruptcy filing, the partners’ personal assets may, in some cases, be used to pay creditors, or the partners may be forced to file for bankruptcy protection themselves.

Sole proprietorships do not have an identity separate and distinct from their owner. This means a chapter 11 bankruptcy case will include both the business and personal assets of the owners- debtors. Chapter 11 bankruptcy is designed in a reorganization format that involves a trustee who oversees a repayment plan, instead of asset liquidation, which is submitted to a court for approval. The court can approve, alter, or suggest a new plan. These plans can last anywhere from three to five years.

Chapter 12 Bankruptcy
Chapter 12 bankruptcy is like Chapter 11 bankruptcy, except that it is specifically designed only for family farmers or family fishers who have regular annual incomes. It is not meant for larger companies or corporations. Under chapter 12, the filing debtor proposes a repayment plan to make installment payments to creditors for all or part of their debts over three to five years.

Chapter 13 Bankruptcy
Chapter 13 bankruptcy is like chapter 11 and 12 bankruptcies in format, but for all other individuals — not for family farmers, fishers, larger companies, or corporations. It enables individuals with regular incomes to develop a plan to repay all or part of their debts by making installment payments to creditors over three to five years.