There are three main types of bankruptcy available to the average person: Chapter 7: Available to individuals and businesses who meet income requirements, Chapter 7 bankruptcy discharges debt while often allowing the debtor to keep some priority assets, although it cannot prevent home foreclosures. Chapter 11: Available to corporations, partnerships, and LLCs, Chapter 11 bankruptcy allows businesses to discharge some debt and reorganize the remainder while also reorganizing and liquidating some of their assets. Chapter 13: Available to individuals, Chapter 13 bankruptcy restructures debt and forms a plan to repay the debt over 3 – 5 years, and it can delay or prevent home foreclosure.