Each state district in the United States has a bankruptcy court.

Depending upon the individual case, there are six basic types of cases that the Bankruptcy Code provides for legally. Each type is named after the chapters of the Bankruptcy Code that describe them.

These are the six types of bankruptcy in basic terms.

Chapter 7 is called entitled Liquidation. This is a court supervised appointment of a trustee that takes over the estate and assets of a debtor. They are liquidated to actual money and then debts are paid as prioritized. The debtor retains some rights to property exemptions.

Chapter 9 is called entitled Adjustment of Debts of a Municipality. This provides for reorganization of cities and towns, other kinds of municipalities and school districts.

Chapter 11 is called entitled Reorganization. This is used by commercial enterprises to continue operating a business under a court supervised plan. The goal being to repay debts and a period of consolidation is usually necessary for the reorganization plan.

Chapter 12 is called entitled Adjustment of Debts of a Family Farmer or Fisherman with Regular Annual Income. The debtor proposes the payment of debts; this is specifically for persons in the industries stated. It allows the famer or fisherman to remain in operation of their business while repaying debts over a time period.

Chapter 13 is called entitled Adjustment of Debts of an Individual with Regular Income. This is the type bankruptcy that enables the debtor to keep an asset, usually their home. This is with a repayment of debts over a time period of three to five years.

Lastly Chapter 15 is called entitled Ancillary and Other Cross-Border Cases. It provides the vehicle for dealing with foreign cases related to United States laws.

One of these is applicable to individual bankruptcy needs.