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Video: What are the different types of bankruptcy?

There are three general types of bankruptcies that persons or a company may consider filing. There's a chapter 7, a chapter 11, and a chapter 13. Chapter 13 is only available for individuals and it's only available for an individual that has a steady source of income. It is also the only chapter that has a debt ceiling. Meaning if you owe too much money you will not be eligible to file a chapter 13. Chapter 7 can be filed by a business or a person as well as a chapter 11. In a chapter 11 you're trying to reorganize your debt, restructure your debts and come out as an operating entity. In a chapter 7 for a business the business is going out of business. Chapter 7 for individuals is the one that most people want to file where they're not paying any money to their creditors and they're seeking a bankruptcy discharge.