There are six bankruptcy Chapters and there for six types of bankruptcies. The types of bankruptcy are as follows:
- Chapter 7 Liquidation – for individuals and business. Only individuals get debts discharged.
- Chapter 9 Municipal Bankruptcy.
- Chapter 11 Reorganization – usually for businesses.
- Chapter 12 Farmer Bankruptcy.
- Chapter 13 For Individuals with regular income – some or all debts are paid back pursuant to a court approved plan.
- Chapter 15 concerns international cases.