For those not in the business of personal finances, all the different chapters of bankruptcy can seem confusing! To help, here are the various different chapters of bankruptcy within the United States and a helpful description in order to allow you to see the subtle nuances and differences between the chapters. These six chapters of bankruptcy are found at Title 11 of the United States Code, named as the Bankruptcy Code.

Chapter Seven: Chapter 7 Bankruptcy is available to individuals and businesses. This form of bankruptcy is a general liquidation of your assets. All of your non-exempt items are turned over to a bankruptcy trustee. The trustee liquidates all of your property and items, with the subsequent money being divided amongst your lenders. It does not include a plan for repayment. This is one of the most popular bankruptcy options for individuals and businesses.

Chapter Nine: Chapter 9 is a municipal bankruptcy. This bankruptcy is granted to municipalities to give them time to develop a plan and negotiate the pay back of their overdue debt.

Chapter Eleven: Chapter 11 bankruptcy is a reassessment and reorganization of debt. This is a very popular option for businesses. However, some individuals have been known to take advantage of this bankruptcy option. This is also known as a ‘reorganization’ bankruptcy.

Chapter Twelve: Chapter 12 bankruptcy is specific for certain professionals. This chapter is for the rehabilitation of debt exclusive to fishermen and farmers that need to declare bankruptcy. These individuals need to have a ‘regular’ annual income in order to qualify.

Chapter Thirteen: Chapter 13 bankruptcy is an available option for individuals that are fortunate enough to enjoy a regular income. These individuals are able to utilize the repayment plan set forth for them in this chapter. This is one of the most popular chapters of bankruptcy for individuals. This type of bankruptcy is also referred to as a wage earner’s plan.

Chapter Fifteen: Chapter 15 bankruptcy is available to international businesses as a form of debt elimination. It is also a viable option for ancillary cases. This newly created chapter is designed to deal with insolvency taking place in more than one country.