Chapter 7 Chapter 7 provides for liquidation, or sale of a debtor's non-exempt property, and the distribution of the proceeds to creditors. This is commonly referred to as a "straight" bankruptcy. Chapter 9 Chapter 9 provides for reorganization of municipalities, including cities, towns, villages, counties, taxing districts, municipal utilities, and school districts. Chapter 11 Chapter 11 provides for reorganization, usually involving a corporation or partnership. The debtor typically proposes a plan of reorganization to keep the entity functioning and repay creditors over time. Both individuals and businesses can seek relief under Chapter 11. Chapter 12 Chapter 12 deals with a "family farmer," or a "family fisherman" as those terms are defined in the Bankruptcy Code. Chapter 13 Chapter 13 is best suited for individuals with regular income. Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years. Chapter 15 Chapter 15 (uncommon) deals with cases of cross-border insolvency between the U.S. and a foreign country. This new chapter was added to the Bankruptcy Code by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.