Chapter 7 Bankruptcy
This type of bankruptcy provides for “liquidation” which is the sale of a debtors nonexempt property and the distribution of the proceeds to creditors.
Chapter 11 Bankruptcy
A Chapter 11 bankruptcy generally reorganizes the debts of a business. A debtor in this type of bankruptcy will propose a plan of reorganization that will allow it to continue its business operations and pay creditors over time. In certain circumstances, individuals can also seek relief in Chapter 11.
Chapter 13 Bankruptcy
Chapter 13 allows an individual to keep property and pay debts over time, usually 3 to 5 years, as long as the debtor has regular income to do so.