You can file chapters 7, 11, 12 or 13
Chapter 7 is designed for individuals, corporations and partnerships in financial difficulty who
do not have the ability to pay their existing debts. Under chapter 7 the trustee takes possession of
all the debtor’s non-exempt property, if any, liquidates it for cash and uses the proceeds to pay
creditors according to priorities of the bankruptcy code.
Chapter 11 allows a business to reorganize and restructure its finances so it may continue to
operate, provide employees with jobs, pay its creditors, and produce a return for its stockholders
if any. While chapter 11 is primarily designed for business it is also available to individuals. In a
chapter 11 a debtor proposes a plan to creditors which, if accepted by the creditors and approved
by the court, will allow a debtor to reorganize.
Chapter 13 enables individuals with regular incomes, under court supervised protection, to repay
their debts over an extended period of time. The plan may call for full or partial repayment.
Corporations cannot file under chapter 13 of the Bankruptcy Code.
Chapter 12 allows family farmers with financial difficulties to repay debts over a period of time
from future earnings. In many ways it is similar to a chapter 13. The eligibility requirements are
restrictive and limits its use to those whose debts arises primarily from a family-owned farm.