Diggers

Chapters

There are six types of bankruptcy under the Bankruptcy Code, located at Title 11 of the United States Code:

    * Chapter 7: basic liquidation for individuals and businesses;

    * Chapter 9: municipal bankruptcy;

    * Chapter 11: rehabilitation or reorganization, used primarily by business debtors, but sometimes by individuals with substantial debts and assets;

    * Chapter 12: rehabilitation for family farmers and fishermen;

    * Chapter 13: rehabilitation with a payment plan for individuals with a regular source of income;

    * Chapter 15: ancillary and other international cases.

The most common types of personal bankruptcy for individuals are Chapter 7 and Chapter 13. (As much as 65% of all U.S. consumer bankruptcy filings are of the Chapter 7 variety.) Corporations and other business forms often file under Chapter 7 or Chapter 11.

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