In the United States, there are six types of bankruptcy under the Bankruptcy Code in Title 11 of the United States Code. These six types are: Chapter 7, Chapter 9, Chapter 11, Chapter 12, Chapter 13, and Chapter 15.Bankruptcy Types

Chapter 7
Chapter 7 bankruptcy is known as liquidation bankruptcy since most of your non-exempt assets are liquidated in exchange for the elimination of your debt (except for child support, spousal support, student loans, and some taxes). It is available for businesses and individuals and is the most basic form of bankruptcy available.


Chapter 9
Chapter 9 bankruptcy is used exclusively for municipalities in an effort to help them restructure their debts. Previously, taxes were raised to aid the municipality in paying off creditors, but this proved impossible during the Great Depression. Chapter 9 eases the process of re-writing collective bargaining agreements.

Chapter 11
Chapter 11 bankruptcy is used primarily for businesses in debt but can also be used by individuals with substantial debts and assets. This is a type of reorganization bankruptcy which allows businesses to follow a repayment plan and continue to function.

Chapter 12
Chapter 12 bankruptcy is similar to the structure of Chapter 13 bankruptcy but gives added benefits to family farmers and fishermen including higher debt ceilings and advantageous exemptions. In 2009, there were only 367 filings of Chapter 12.

Chapter 13
Chapter 13 bankruptcy is a form of individual debt reorganization; individuals who file Chapter 13 bankruptcy have a regular source of income and create a payment plan that includes all of their outstanding debts. Debtors are permitted to retain all of their assets unlike the provisions of Chapter 7. The whole process generally takes between three and five years.

Chapter 15
Chapter 15 bankruptcy encompasses ancillary and other international cases; it provides solutions to problems in cross-border bankruptcy. The United States courts can issue subpoenas, order assets to be turned over, issue stays on pending actions, and other orders as circumstances dictate.

If you or a loved one is facing economic hardship, it may be the time to consider declaring bankruptcy. Consult an experienced bankruptcy lawyer, such as those at the Law Offices of Larry Leshin, to discuss your options and identify the best course of action for your unique circumstances.