Bankruptcy is a legal status granted by a court declaring that a person is unable to repay their debts. Bankruptcy law in the United States is governed under Federal law. Specifically, bankruptcy laws found in title 11 of the United States Code. The individual kinds of bankruptcy are named after the chapter in which they are found in Title 11. Two of the most common types of bankruptcy are Chapter 7 and Chapter 13. While many people have heard of these, they may not understand the difference Chapter 7 and Chapter 13 bankruptcy can make.
Chapter 7, also called liquidation, is the most common type of bankruptcy. In a Chapter 7 bankruptcy, the c