- Individuals, couples and businesses can file Chapter 7, which is the most common type. All nonexempt assets--as determined by the state--are liquidated to pay off as much debt as possible, and the remaining debt is discharged.
- Chapter 9 is used by municipalities to restructure debt that has become unmanageable.
- Chapter 11, also known as reorganization, is generally used by businesses, but it also can be used by individuals whose debt exceeds the limits of other types of bankruptcy. The debtor proposes a restructuring plan that must be accepted by creditors and approved by the court.
- Chapter 12 is specifically designed for family farmers or fisherman. It typically involves a three-year repayment plan.
- Chapter 13 is used by individuals whose income level prohibits them from using Chapter 7 and whose debt is less than specified amounts. The debtor retains all assets and makes regular payments to a trustee according to a three- to five-year repayment schedule established by a judge.