There are four type of bankruptcy:
Chapter 7: This is personal bankruptcy plan these can be file by any person if he is unable to pay his debt .Under these his total assets liquidated to pay debt of the creditors.
Chapter 7 bankruptcy prevents the debtor from collection agency .Straight bankruptcy take one month to complete. One can file chapter 7 bankruptcy once in six years only.
Chapter 11: It is business bankruptcy it also used for personal bankruptcy but it is a critical so its better that you can take help from attorney.
Chapter 12: It is a bankruptcy for family of farmer, it allowed to pay debt after over time.
Chapter 13 : Chapter 13 bankruptcy is general use to protect some property which otherwise they loss.
Here you need to produce a new plan to payoff debt, if the trustee convince than they allow you new period other wise they put you under chapter 7 bankruptcy.
Chapter 7 and 13 is generally used other depend on the basis of circumstances.
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