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==Bankruptcy Code Chapters==
==Bankruptcy Code Chapters==
===Chapter 7===
===Chapter 7===
A '''Chapter 7''' bankruptcy provides for the total "liquidation" of the debtor's assets (the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors).
In order to be eligible for Chapter 7, the debtor must satisfy a '''means test''', whereby the court will evaluate the debtor's income and expenses to determine if the debtor may proceed under Chapter 7.
Chapter 7 bankruptcies are most common in the business realm, whereby a business declares total insolvency and seeks to cease doing business forever.
== Types of bankruptcies==
== Types of bankruptcies==