Chapters of the Bankruptcy Code

Chapter 7: Liquidation

This chapter provides for the liquidation of the debtor’s assets by a trustee. This is available to both individuals and businesses. Over 98% of these cases are filed by individuals.

 

Chapter 9: Reorganization for Municipalities

This is a specialized chapter governing bankruptcies of cities and municipalities.

 

Chapter 11: Reorganization

Provides for reorganization. Though used primarily by firms, it can also be used by individuals. The key aspect of this chapter is that the management remains in control.

 

Chapter 12: Reorganization

This chapter provides a simplified form of restructuring for farmers.

 

Chapter 13: Reorganization

Permits consumers to repay all or a portion of their debts over time, rather than go through liquidation.

 

Chapter 15: Cross-border insolvency

For multinational situations. Applies to U.S. assets of firms that file primary bankruptcy in another country.