Chapter 13 is for self-employed individuals that have run into financial trouble and need more time to get their finances in order. They must come up with a debt repayment plan that meets their creditors’ approval.
Chapter 12 is reserved primarily for family fishermen and farmers. As with Chapter 13, anyone filing chapter 12 must design a repayment plan.
Chapter 7 is for those with no foreseeable way of ever paying their debts. They may be required to liquidate certain assets to pay what they can.