“Chapter” simply refers to which section of the U.S. bankruptcy code governs the situation. Different chapters are used in different situations. There are actually six different chapters of bankruptcy, though 99.99% of the people reading this will only ever likely be subject to two of them. The six are: Chapter 7: Individual Liquidation. Chapter 13: Reorganized Debt. Chapter 11: Business Bankruptcy. Chapter 12: Similar to chapter 13, but with more flexible terms, but specifically available only to family farmers and fishermen. Chapter 15: Bankruptcy that specifically deals with foreign (rather than domestic) creditors. Chapter 9: Similar to chapter 11, but for towns, cities, and municipalities rather than businesses.