Bankruptcy & Settlements

There are six types of bankruptcies:

  • Chapter 7: Liquidation.
    • Involves selling business assets to meet current debt obligations;
    • Most common form option;
  • Chapter 13: Repayment Plan.
  • Chapter 11: Large Reorganization.
  • Chapter 12: Family Farmers.
  • Chapter 15: Used in Foreign Cases.
  • Chapter 9: Municipalities.
    • Reserved for governments.

Source: https://www.debt.org/bankruptcy/types/