What are the different bankruptcy chapters?
They refer to different parts, called chapters, of the bankruptcy law. Individuals may use Chapter 7 or Chapter 13. Chapter 7 gives you a fresh start by discharging your unsecured debts (such as credit cards and medical bills). It is sometimes called liquidation. Businesses may used Chapter 7 to liquidate or Chapter 11 to reorganize their business and repay their debts over a period of years under a “plan.” Business that wish to continue as going concerns must use Chapter 11.
