Chapter 7 Bankruptcy gives creditors (people whom you owe money to) a fair portion of the money that the debtors (those who are filing for bankruptcy) can afford to pay back. Bankruptcy cancels many of the obligations owed by debtors, giving them a chance at a fresh start. Debtors are to forfeit some property that they own at the time they file a Chapter 7 bankruptcy case. A trustee sells this property and uses the proceeds to pay creditors. A Chapter 7 bankruptcy generally allows debtors to keep the money that they earn after filing for bankruptcy.
Chapter 9 allows municipalities to reorganize debt.
Chapter 11 is typically used for business bankruptcies and restructuring. It is not commonly used by individual consumers because it is far more complex and expensive to pursue. It allows businesses to reorganize themselves, giving them an opportunity to restructure debt and get out from under certain burdensome leases and contracts. Typically, a business is allowed to continue to operate while it is in Chapter 11, although it does so under the supervision of the Bankruptcy Court and its appointees.
Chapter 12g> allows family farmers to reorganize debt. It is very similar to Chapter 13, but with higher debt limits.
Chapter 13 is a section of the Bankruptcy Code which helps qualified individuals (or small proprietary business owners) who desire to repay their creditors but are in financial difficulty. It is often referred to as a "mini Chapter 11" because one usually repays something to one's creditors. One may also retain their property and make payments under a Plan.
If you have filed Bankruptcy, you can get approved!
