Yes. Bankruptcies can generally be described as “liquidation” (Chapter7) or “reorganization” (Chapter 13).
Liquidation bankruptcy is called Chapter 7. Under Chapter 7 bankruptcy, a consumer asks the bankruptcy court to wipe out (discharge) the debts owed. Certain debts cannot be discharged.
There are several types of reorganization bankruptcy (Chapter 13). Consumers with secured debts under $871,550 and unsecured debts under $269,250 can file for Chapter 13. Family farmers can file for Chapter 12. In any reorganization bankruptcy, a plan is filed with the bankruptcy court proposing how you will repay your creditors. Some debts must be repaid in full; others will be paid based on a percentage of the total debt owed; others may not be paid at all.