Quick Answer: What are the different bankruptcy chapters?
The U.S. Bankruptcy Code includes six main bankruptcy chapters: Chapters 7, 9, 11, 12, 13, and 15. Each chapter is designed for a different type of debtor and financial situation. Most individuals compare Chapter 7 and Chapter 13, while businesses, municipalities, family farmers, family fishermen, and cross-border insolvency cases may qualify under other chapters. Choosing the correct chapter depends on your income, assets, debts, and financial goals—not simply how much you owe
Before deciding which bankruptcy chapter to file, review:
Your income and monthly expenses
Whether your debts are primarily secured or unsecured
The value of your home, vehicles, and other assets
Whether you are behind on mortgage or car payments
If you qualify for Chapter 7 under the means test
Whether you have regular income to support a repayment plan
Whether you own a business or operate as a sole proprietor
Any recent transfers of property or large payments
Whether foreclosure, repossession, or wage garnishment is pending
Which bankruptcy exemptions may protect your property
Important note: Filing under the wrong bankruptcy chapter can affect your property, repayment obligations, eligibility for a discharge, and the overall outcome of your case. Bankruptcy chapters are not interchangeable, and changing chapters after filing is not always simple or available.
What are the different chapters of bankruptcy?
Bankruptcy chapters are not ranked by how serious a person’s debt has become. They are separate procedures for separate financial problems. A renter overwhelmed by medical bills may need a discharge. A homeowner behind on the mortgage needs time to catch up. A company with payroll and contracts presents a different problem again.
Deciding whether to file for bankruptcy is not a matter of reaching a fixed dollar amount. How much debt a person owes matters, but the type of debt, income, property, collection pressure, and wider financial situation matter more. A useful personal bankruptcy analysis asks what relief is legally available and what the debtor needs to protect.
Those distinctions explain why the Bankruptcy Code contains six principal different types of bankruptcy chapters: 7, 9, 11, 12, 13, and 15. Most consumers will be comparing Chapter 7 with Chapter 13. The remaining chapters cover business reorganization, municipal debt adjustment, family farming and fishing operations, and insolvency cases that cross national borders.
Bankruptcy Basics: What Are the Different Types of Bankruptcy Chapters?
The answer to what are the different chapters of bankruptcy begins with the debtor and the purpose of filing. Chapter 7 uses liquidation. Chapters 11, 12, and 13 rely on court-approved plans under sharply different rules. Chapter 9 is written for municipalities; Chapter 15 connects a U.S. case with a foreign insolvency proceeding.
That is the basic explanation, but the bankruptcy process is more exacting in practice. A consumer may be eligible for either a Chapter 7 liquidation or Chapter 13 repayment case, while a business owner may need Chapter 11. Filing bankruptcy papers under the wrong chapter can expose property, increase cost, or produce a plan the debtor cannot sustain.
The fees below were current in July 2026. They are federal court filing fees only; attorney fees, required courses, and case-specific expenses are separate.
Chapter
Typical filer
What the case is meant to do
Federal court filing fee
Chapter 7
Individuals and business entities
Liquidate nonexempt estate property; discharge qualifying individual debt
$338
Chapter 9
Eligible municipalities
Adjust municipal debt
$1,738
Chapter 11
Businesses and some individuals
Reorganize debt or carry out a structured liquidation
$1,738
Chapter 12
Qualifying family farmers and family fishermen
Reorganize through a specialized plan
$278
Chapter 13
Individuals with regular income
Repay debt under a three-to-five-year plan
$313
Chapter 15
Foreign representatives
Obtain recognition and coordinate a cross-border case
$1,738
The different bankruptcy chapters are not interchangeable. Chapter selection changes the treatment of property, control over assets, creditor payments, and the conditions attached to a discharge.
Why the Bankruptcy Chapter Changes the Case
Bankruptcy is governed by federal law found in Title 11 of the United States Code, and federal bankruptcy courts hear the cases. State law may still determine ownership rights, available bankruptcy exemptions, and whether a foreclosure sale has transferred title.
Every bankruptcy filing opens a bankruptcy case with its own deadlines, disclosures, and consequences. Who administers estate property? Must the debtor fund a plan? Can mortgage arrears be cured? Will the business remain open? The chapter answers those questions and shapes the cost, timing, and risk of filing.
Filing personal bankruptcy can become a complicated process when tax debts, business assets, disputed ownership, or earlier cases are involved. The legal process also treats debt settlement outside court differently from debt relief obtained through a discharge or confirmed plan.
Chapter 7 Bankruptcy: Liquidation, Exemptions, and Discharge
Chapter 7 is often called “liquidation bankruptcy,” but filing does not mean a debtor automatically loses everything. The questions are narrower: what entered the bankruptcy estate, which exemptions protect it, and what remains for the trustee to administer?
Chapter 7 has no multi-year repayment plan. The bankruptcy trustee reviews the disclosures and financial records. Nonexempt estate property with enough realizable value may be sold, with the proceeds used to pay creditors under bankruptcy law.
Who May File Chapter 7?
Individuals and business entities may file, although only individuals receive a discharge. Consumer debtors often face means-test review. Income below the applicable state median usually ends the calculation at its first stage; income above it calls for further analysis, not automatic disqualification.
Credit card debt, medical bills, and other qualifying unsecured debts are often discharged. Domestic support debt, certain tax debts, and other statutory exceptions may survive. Eliminating personal liability also does not erase a valid lien on a house or vehicle. The $338 Chapter 7 filing fee shown above was current in July 2026.
What Does the Chapter 7 Trustee Examine?
Federal exemptions or state exemption law draw the line between exempt property and property available to the estate. Home equity, vehicles, bank balances, tax refunds, legal claims, and expected inheritances require review. Search results often use the phrase “non exempt property,” though courts and statutes usually write “nonexempt property.”
The U.S. Courts describes most individual Chapter 7 cases as no-asset cases. That does not mean more than 95% of all filings are guaranteed to end that way. Equity, recent transfers, payments to relatives, or an overlooked asset can produce a different result. When assets are available, liquidating assets is the trustee’s task, not the debtor’s private choice.
Chapter 13 Bankruptcy: Repayment Under Court Supervision
Chapter 13 is for eligible individuals with regular income, including sole proprietors. The debtor keeps property and makes payments through a trustee under a three-to-five-year plan.
Debt ceilings apply. As of July 2026, an individual must owe less than $526,700 in unsecured debt and less than $1,580,125 in secured debt. Congress adjusts those figures periodically, so a lawyer should verify the limits in force on the filing date.
Not sure which bankruptcy chapter fits your situation?
DebtStoppers can review your income, assets, debts, and financial goals to determine whether Chapter 7, Chapter 13, Chapter 11, or another bankruptcy option is the best fit before you file.
The debtor proposes the plan; the judge does not write it. Creditors and the trustee may object, and the court decides whether the proposal meets confirmation requirements.
Payments generally begin within 30 days of filing. Income, allowable expenses, arrears, priority claims, nonexempt equity, and the projected Chapter 7 distribution can affect the amount. Disposable income may determine how much must be committed to the plan. The trustee distributes the funds, and debt payments may carry different treatment for secured, priority, and unsecured claims. Eligible unpaid unsecured balances may be discharged after successful completion.
Can Chapter 13 Stop a Foreclosure?
Chapter 13 may provide time to cure mortgage arrears while new payments continue. Timing is decisive: filing after a completed foreclosure sale may not restore ownership.
The automatic stay commonly pauses a pending sale or wage garnishment, but a creditor can seek relief and earlier dismissed cases may limit the protection. The budget must support the structured plan and ongoing mortgage. A confirmed plan may also change the timing of payments on certain debts, although it does not simply rewrite every contract or erase all interest rates.
Chapter 11 Reorganization Bankruptcy for Businesses and Individuals
Chapter 11 is associated with corporations, yet the statute is not confined to them. An individual whose debt exceeds the Chapter 13 ceilings, or whose financial affairs cannot be handled within Chapter 13 rules, may also file.
The debtor ordinarily controls estate assets as a “debtor in possession” while keeping records, filing operating reports, and complying with court and U.S. trustee oversight. For a company in financial distress, that structure can preserve business operations and business assets while the case proceeds. A trustee may be appointed for cause.
The plan groups claims into classes and states their treatment. Certain creditors may vote or object, and the court applies the confirmation standards. The result may be an operating reorganization or an orderly liquidation. U.S. Courts recorded 8,884 Chapter 11 filings in 2024, up from 7,456 in 2023.
What Is Subchapter V?
Subchapter V is a Chapter 11 procedure for debtors meeting the small-business criteria. In July 2026, its combined debt ceiling was $3,424,000, with at least half arising from business activity. A trustee participates and works toward a consensual plan. The debtor must still satisfy the statutory definition and filing obligations.
Chapters Written for Specialized Debtors or Proceedings
Cities, counties, taxing districts, municipal utilities, and certain school districts may qualify. The municipality must be insolvent and authorized to file under state law.
Public operations continue while Chapter 9 protects the municipality from creditors during negotiation of a debt-adjustment plan. The court may rule on eligibility and confirmation but cannot liquidate the municipality as it could a Chapter 7 business. Detroit’s 2013 case remains the largest Chapter 9 case in U.S. history. The procedure is rare: only three Chapter 9 petitions were filed in 2024.
Chapter 12: Family Farmers and Family Fishermen
Qualifying family farmers and family fishermen propose a plan lasting three to five years. The rules account for seasonal income.
Eligibility tests cover total debt, the portion tied to the operation, and the source of family income. “Regular annual income” may include seasonal income if it is stable enough to support plan payments. In July 2026, the applicable debt ceilings were $12,562,250 for a family farmer and $2,568,000 for a family fisherman. Occupation alone does not establish eligibility.
Chapter 12 is tailored to agricultural and fishing operations that may not fit Chapter 13 debt limits or wage-earner assumptions. It can permit some secured obligations to be paid beyond the three-to-five-year plan period. The filing fee was $278 in July 2026, and 216 Chapter 12 cases were filed during 2024.
Chapter 15: Cross-Border Insolvency
Added in 2005, Chapter 15 covers insolvency involving more than one country. A foreign representative may seek U.S. recognition of a foreign main or nonmain proceeding.
The American case is generally ancillary to the case abroad. A foreign debtor does not obtain an ordinary U.S. consumer discharge merely because a representative files a Chapter 15 petition. Recognition permits coordination between U.S. and foreign courts and access to specified remedies. Recognition of a foreign main proceeding also activates the automatic stay and other protections.
Official court data report 330 Chapter 15 filings in 2024, not 342. The figure shows how small this category remains beside the domestic consumer chapters.
Chapter 7 vs. Chapter 13 vs. Chapter 11
For consumers, the useful comparison is what happens to property, income, and debt after filing.
Practical question
Chapter 7
Chapter 13
Chapter 11
Who commonly files?
Individuals; sometimes businesses
Individuals with regular income
Businesses and some individuals
What drives the case?
Exemptions, estate administration, and discharge
A three-to-five-year payment plan
A case-specific reorganization or liquidation plan
Who handles estate assets?
A Chapter 7 trustee administers them
The debtor generally retains property while funding the plan
The debtor usually remains in possession
What receives close scrutiny?
Nonexempt property and discharge eligibility
Income, arrears, feasibility, and creditor treatment
Reporting, plan classification, voting, and confirmation
How long does payment continue?
No Chapter 13-style plan
Three to five years
Depends on the confirmed plan
Choice among the different chapters of bankruptcy follows the filing objective. Chapter 7 may fit protected property and unsecured debt. Chapter 13 can address arrears and other debts through a plan. Chapter 11 can handle an operating business or finances that do not fit Chapter 13.
How to choose the right bankruptcy chapter for you?
Choosing the right bankruptcy chapter depends on more than the total amount of debt you owe. Your income, assets, secured and unsecured debts, mortgage or car arrears, business interests, and ability to make monthly payments can all affect which chapter fits your situation. Chapter 7 may be appropriate for someone seeking relief from qualifying unsecured debt and who meets the eligibility requirements, while Chapter 13 may make more sense for someone with regular income who needs time to catch up on secured debts or protect property through a repayment plan.
The decision should also account for exemption limits, pending foreclosure or garnishment, recent property transfers, tax obligations, and prior bankruptcy cases. Because filing under the wrong chapter can affect your property, repayment obligations, and discharge, reviewing the full financial picture with a bankruptcy attorney before filing can help identify the option that best matches your goals.
What Happens Before and Immediately After Filing?
An individual debtor generally completes approved credit counseling during the 180 days before filing, unless an exception applies. The course meets a statutory requirement; it does not select the chapter. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 added major consumer provisions, including the current credit-counseling framework and means-test rules.
The petition and schedules disclose property, debt, income, expenses, financial history, and specified transactions. The statement of financial affairs covers transfers, lawsuits, payments, and other required history. Omitting an asset or transfer can threaten the requested relief.
Filing under Chapters 7, 9, 11, 12, and 13 generally stays many lawsuits, garnishments, collection calls, and repossessions. Exceptions, creditor relief, and repeat-filing restrictions apply. Chapter 15 uses a separate recognition framework.
How an Attorney Tests the Fit of a Bankruptcy Chapter
A lawyer reviews income; secured, priority, and unsecured debt; arrears; tax obligations; property equity; and business operations. Recent transfers, repayments to relatives, earlier cases, garnishment, or an approaching foreclosure date can alter the recommendation. The analysis also compares bankruptcy with debt settlement and other debt relief routes.
“The amount of debt is only the first page of the analysis. Two households can owe the same total and still need different chapters because one is protecting home equity while the other needs relief from unsecured debt. We look at income, assets, arrears, and the type of debt before recommending a filing strategy.”
The review may show that pursuing bankruptcy is not the soundest option or that an exemption or eligibility issue must be resolved first. Anyone preparing to file should seek professional legal advice about the facts of the case, since a general article cannot test local exemptions, lien rights, or discharge exceptions.
Choosing the right bankruptcy chapter starts with the right legal advice.
Every bankruptcy case is different. DebtStoppers can explain your options, identify potential risks, and help you choose the chapter that offers the strongest protection for your financial situation.
Conversion is possible in some cases, but the debtor must qualify under the new chapter. The change may affect control of property, required payments, and discharge. A failed plan, changed income, or a newly discovered asset can prompt the discussion.
Frequently Asked Questions
What are the six chapters of bankruptcy?
They are Chapters 7, 9, 11, 12, 13, and 15. Chapters 7 and 13 handle most consumer cases; the others cover reorganization, municipalities, family farming and fishing, or cross-border proceedings.
Which chapter is filed most often?
Chapter 7. During the 12 months ending June 30, 2026, U.S. Courts reported 382,161 Chapter 7 cases and 215,490 Chapter 13 cases. Together, they represented about 98.2% of filings.
What separates Chapter 7 from Chapter 13?
Chapter 7 uses trustee administration without a multi-year plan. Chapter 13 lets an eligible individual keep property while making plan payments, often to cure arrears or account for nonexempt equity.
May an individual file Chapter 11?
Yes. An individual may consider Chapter 11 when debts exceed Chapter 13 ceilings or the proposed reorganization cannot be handled under Chapter 13.
Can a small business use Chapter 13?
A corporation or LLC cannot file Chapter 13. A self-employed individual or sole proprietor may qualify because the owner and business are the same legal debtor.
Which chapter may stop foreclosure?
Chapter 13 may pause a pending sale and place mortgage arrears in a plan. Filing timing, new mortgage payments, plan feasibility, and earlier cases matter.
Does bankruptcy erase every debt?
No. Discharge exceptions apply, and valid liens may remain after personal liability ends. Certain debts, including domestic support obligations and some taxes, may survive. Chapters 9 and 15 do not grant a conventional consumer discharge.
Does filing always create an automatic stay?
Chapters 7, 9, 11, 12, and 13 generally trigger a stay at filing, subject to exceptions. Chapter 15 protections follow recognition of a foreign main proceeding. Earlier dismissed cases may limit the stay.
How long can Chapter 7 remain on a credit report?
A Chapter 7 case may remain on a credit report for up to 10 years from filing. That is not a ten-year ban on borrowing.
Can the chapter be changed after filing?
Sometimes. Eligibility, good faith, and case history affect conversion, which may change property administration, payments, and discharge.
Speak With a DebtStoppers Bankruptcy Attorney
The number beside a bankruptcy petition should follow the financial analysis. DebtStoppers attorneys review debt, income, property, arrears, collection activity, and the reason for filing before comparing available procedures. For an eligible individual, discharge or reorganization may create a fresh start, but no chapter can promise a fresh financial start without examining the debtor’s financial obligations and property.
Schedule a free consultation if you live in Illinois, Georgia, or Texas. A case review can identify eligibility questions, deadlines, and filing risks.
This article provides general information, not legal advice. Results depend on the facts, applicable law, and local court practice. Reading it does not create an attorney-client relationship.
Pat is the Managing Partner of The Semrad Law Firm, which does business as DebtStoppers, the largest consumer law firm in the United States. Patrick concentrates on providing access to affordable legal representation to bankruptcy clients regardless of their income. Since 2004, the firm has grown from four attorneys in Chicago to over 85 attorneys in five states with offices in Europe as well.
Practicing consumer bankruptcy law is a privilege for Pat. He knows of no other area of law that empowers an attorney to make such an immediate positive impact on his clients’ lives. It has been Pat’s mission to foster a team of attorneys and staff who are as passionate about helping individuals and families that are facing financial hardship. In this, Pat views his position as Managing Partner to be a support role dedicated to providing resources and professional development to every employee at DebtStoppers.
Pat periodically volunteers legal services through the North Suburban Legal Aid Clinic and the Together for Childhood Network in Lake County. He advises The Balance Project, a local not-for-profit founded by his wife, Agi, which supports mental health throughout the community.
Pat is a member of the Illinois Bar, Florida Bar, and General Bar for the U.S. District Court for the Northern District of Illinois. Mr. Semrad graduated magna cum laude from DePaul College of Law, where he was a member of the DePaul Law Review. He also received his Bachelor’s degree in Finance from DePaul.
Outside of his professional activities, Pat is an active member of the Windy City Chapter of YPO. He is also an active community member in Highland Park and regularly participates in local events and political campaigns. He enjoys woodworking, sailing, and playing terrible paddle. He is also a member for the Union League Club of Chicago.
Education: J.D., DePaul College of Law · B.S., Finance, DePaul University, 2001
