What are the Different Types of Bankruptcy in the United States?
While bankruptcy codes vary by country, and some countries may not allow for bankruptcy as many Western countries understand it, there are several types of bankruptcy options available in the United States. These types of bankruptcy are best known for the chapters in the US Code which describes them and their rules. They are Chapter 7, Chapter 11, Chapter 12 and Chapter 13. Of all the types of bankruptcy, perhaps Chapter 7 is best known. It is also the most severe. All unsecured debts are terminated with money being paid after any assets are liquidated that are not exempt. In most cases, the liquidation of assets will not affect many people, unless they have substantial assets such as land or a second home. Chapter 7 is available both to individuals and corporations. While Chapter 7 is seen as a termination of all debts, this is not necessarily the case. Some debts, such as secured debts, may be allowed to continue standing. Car loans and home mortgage loans, for example, will still be
