What are the different types of bankruptcy in the US?
Bankruptcy cases in the US are filed in United States Bankruptcy Court, part of the US District Courts system. However, state laws concerning bankruptcy vary, and the validity of the claims and exemptions must be supported by state law. Six forms of bankruptcy are defined under the Bankruptcy Code, which is located at Title 11 of the United States Code these are: • Chapter 7 – for an individual or a business; liquidation-style; • Chapter 9 – municipal bankruptcy; • Chapter 11 – primarily for businesses, but also for individuals with large assets and debts; • Chapter 12 – for family farmers and fishermen; payment-plan or rehabilitation-style; • Chapter 13 – for an individual with regular income; payment-plan or rehabilitation-style; • Chapter 15 – ancillary and other “cross-border” situations. Chapter 7 and Chapter 13 are the most common types of bankruptcy filed for individuals.
