Bankruptcy is a federal court proceeding designed to provide individuals and businesses with a way to address debt problems. It is intended to provide debtors with a “ fresh start” or debt relief, while treating creditors fairly. There are six types of bankruptcy: Chapter 7, 9, 11, 12, 13 and 15. This material discusses Chapter 7 and 13 bankruptcies – the chapters most commonly used by consumers. Chapter 9 is for municipalities. Chapter 11 is typically for business reorganization. Chapter 12 is for family farmer and fisherman reorganization, and Chapter 15 is to recognize a foreign bankruptcy proceeding.