Overview

• The most common bankruptcy proceedings are chapter 7, chapter 11 and chapter 13. Chapter 7 and 13 are used by individuals; chapter 11 is referred to as "reorganization" and is used by corporations and business partnerships. Chapter 7 is often filed by individuals with modest incomes seeking to discharge consumer debt. Chapter 11 is used by individuals with larger annual incomes; it allows filers to make structured payments to a bankruptcy trustee, who distributes the money to the filer's creditors.