Chapter 7 - Liquidation
The chapter of the Bankruptcy Code providing for
"liquidation," i.e., the sale of a debtor's nonexempt
property and the distribution of the proceeds to creditors. Lawyers
sometimes refer to it as a "straight bankruptcy."
Chapter 9 - Municipality
The chapter of the Bankruptcy Code providing for reorganization of municipalities (which includes cities and towns, as well as villages, counties, taxing districts, municipal utilities, and school districts).
Chapter 11 - Reorganization
A reorganization bankruptcy, usually involving a corporation or
partnership. A chapter 11 debtor usually proposes a plan of
reorganization to keep its business alive and pay creditors over
time. People in business or individuals can also seek relief in
Chapter 12 - Family Farmer
The chapter of the Bankruptcy Code providing for adjustment of debt
of a "family farmer."
Chapter 13 - Individual Debt
The chapter of the Bankruptcy Code providing for adjustment of debts
of an individual with regular income. Chapter 13 allows a debtor
to keep property and pay debts over time, usually three to five years.
Chapter 15 - Ancillary and Other Cross-Border Cases
Chapter 15 is a new chapter added to the Bankruptcy Code by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. It is the U.S. domestic adoption of the Model Law on Cross-Border Insolvency promulgated by the United Nations Commission on International Trade Law ("UNCITRAL") in 1997, and it replaces section 304 of the Bankruptcy Code.
A release of a debtor from personal liability for certain
A Public Information Series of the Bankruptcy Judges Division designed
to provide debtors, creditors, judiciary employees, and the general
public with a basic explanation of bankruptcy and how it works.
Explains many of the legal terms that are used in cases filed under
the Bankruptcy Code.