There are four types of bankruptcy cases provided under the law:

- Chapter 7 is known as "straight" bankruptcy or "liquidation." It
requires a debtor to give up property which exceeds certain limits
called "exemptions", so the property can be sold to pay creditors.

- Chapter 11, known as "reorganization", is used by businesses and a few individual debtors whose debts are very large.

- Chapter 12 is reserved for family farmers.

- Chapter 13 is called "debt adjustment". It requires a debtor to file a plan to pay debts (or parts of debts) from current income.

Most people filing bankruptcy will want to file under either chapter 7 or chapter 13. Either type of case may be filed individually or by a married couple filing jointly.