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→Bankruptcy Code Chapters
==Bankruptcy Code Chapters==
==Bankruptcy Code Chapters==
Each different type of bankruptcy is covered under a different Chapter of the Code.
Although a bankruptcy may be filed under one chapter (either by the debtor or the creditors), the other party may seek to have the bankruptcy changed ("converted") to one under a different chapter. For example, a business may seek reorganization under Chapter 11, but its creditors (believing that the business has no chance of survival) may petition a conversion to Chapter 7.
===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).
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).