Bankruptcy Overview
Find your best path forward.
Explore quick, plain-English summaries of Chapters 7, 11, 12, and 13; then jump into the detailed page that fits your situation. (Info only; not legal advice.)
Chapter 7 — Liquidation
For people with primarily unsecured debts and limited income/assets. Fast fresh start using exemptions to protect certain property.
- Discharge many unsecured debts
- Trustee reviews; non-exempt assets may be sold
Chapter 11 — Reorganization
For businesses and some individuals to restructure debt while operating. Subchapter V streamlines small-business cases.
- Automatic stay pauses most collections
- Plan restructures contracts, leases, and debts
Chapter 12 — Family Farmers & Fishermen
Specialized reorganization with seasonal or annual payments aligned to real-world revenue cycles. Keep the farm or boat running.
- Seasonal plan flexibility
- Tools to adjust secured debts and arrears
Chapter 13 — Repayment Plan
3–5 year payment plan for wage earners to cure arrears and reorganize debt while protecting property within Chapter 13 limits.
- Catch up mortgage or car payments
- Protect non-exempt assets while repaying