Bankruptcy is often an undesired situation in an individuals life. The laws set to oversee bankruptcy usually vary but often share some guidelines. There are several types of bankruptcy as dictated by the laws but there are two which are mostly associated with individuals. These are chapter 7 and chapter 13. However, sometimes some individuals may opt for chapter 11 bankruptcy.
Chapter 7 Bankruptcy
Chapter 7 is commonly preferred by individuals but also small businesses can use it. However, it is regarded as the harshest. You can also refer it as liquidation or straight bankruptcy.