In the United States, there are several different types of bankruptcies that can be filed for by consumers and companies.  The different types of bankruptcy that individuals and businesses can file for are defined below:

Chapter 7
Chapter 7 is a type of consumer bankruptcy, which means that businesses are eligible to file for it.  People who successfully file for Chapter 7 have their debts discharged 4 to 6 months after filing.  This means that their debts are completely eliminated and they are provided with a clean financial slate.  Learn more about Chapter 7 Bankruptcy.

Chapter 13
Chapter 13 is a type of consumer bankruptcy.  Businesses are not allowed to file for this type of bankruptcy.  When people file for Chapter 13, they agree to repay their debts over the span of 3 to 5 years by submitting a payment each month.  Learn more about Chapter 13 Bankruptcy.

Chapter 11
Chapter 11 is a type of bankruptcy that is filed for by businesses, not individual consumers.  Businesses that file for Chapter 11 will try to reorganize operations, work force and general costs to reduce expenditure.  Companies will try to increase their revenue stream so that they can repay their creditors.

Chapter 12 & Chapter 15
Chapter 12 and Chapter 15 are two other types of bankruptcy that are filed for in the United States.  Chapter 12 Bankruptcy provides financial protection for farmers and fishermen who are struggling with debt.  Chapter 15 Bankruptcy allows people who are cross-borders access to the U.S. bankruptcy courts and bankruptcy proceedings.  It is also referred to as “ancillary bankruptcy”.