The type of bankruptcy to file depends on whether the debtor is an individual or a business entity like a corporation or an LLC. If the debtor is an individual, they can opt for Chapter 7 bankruptcy, provided they qualify. They also have the options of filing for Chapter 11 or Chapter 13 bankruptcy. On the other hand, if the debtor is a business entity like a corporation, their choices are limited to Chapter 7 or Chapter 11 bankruptcy.