An individual seeking bankruptcy relief may consider filing under chapter 7, chapter 13, or chapter 11. Chapter 7 is used to discharge dischargeable unsecured debt and to retain exempt property. Chapter 13 and chapter 11 are available to individuals to reorganize their affairs while under the protection of the bankruptcy court.

Often an individual may seek bankruptcy relief for typical consumer debt such as credit cards, personal loans, medical bills, and debt for repossessed vehicles.  If all of a person's property is "exempt", he would generally file for bankruptcy under chapter 7. A chapter 7 debt does not pay back any of his debt and receives his discharge of debt at the end of the end which is typically about 4 months. A consumer debtor who has property substantially in excess of that allowed as "exempt", he would generally consider filing for relief under chapter 13. Under chapter 13, a percentage of the debt is paid back under a three to five year plan and the balance of the debt is discharged.  Individuals with complex situations may consider filing for reorganization under chapter 11 as it presents more flexibility for reorganization than chapter 13.

Chapter 13 is the type of personal bankruptcy used to save a home from foreclosure. Under chapter 13, mortgages may be reinstated by catching up-to-date payments that are in arrears under a three to five year chapter 13 plan. Junior mortgages that are wholly "underwater" due to a decline in value of the real estate may be avoided. Under a chapter 13 plan, unsecured creditors usually only receive a small portion of their debt and the balance is discharged.

Chapter 11 of the Bankruptcy Code provides for the reorganization of businesses as well as individuals.