What are the different types of bankruptcy?

There are several types of bankruptcy, each serving different purposes depending on the financial circumstances of the individual or company involved. The most common types include Chapter 7, Chapter 11, and Chapter 13 bankruptcy. Chapter 7 is referred to as liquidation bankruptcy, where non-exempt assets are liquidated to pay off creditors. Chapter 11 bankruptcy is primarily used by businesses and allows for reorganization to continue operations and repay debts. Chapter 13 bankruptcy is designed for individuals with regular income and allows for a repayment plan to settle debts over a period of time. Other less common types include Chapter 9 for municipalities, Chapter 12 for family farmers, and Chapter 15 for international cases. The appropriate type of bankruptcy depends on the specific financial situation and the goals of the debtor.