Chapter 7: This is a "liquidation" bankruptcy for individuals seeking to discharge their debt and retain their assets. A trustee collects the non-exempt property of the debtor, converts the property to cash, and distributes the cash to the creditors according to § 726 of the U.S. Bankruptcy code.
Chapter 11: This is commonly called a "reorganization". Typically, this chapter is used to reorganize the debts of a business.
Chapter 13: This is commonly called a "wage earner" bankruptcy for debtors with a regular income.

Bankruptcy Information

What are my rights as a lender when a customer files bankruptcy?