Chapter 7 bankruptcy is the fastest form of debt relief available. It eliminates eligible debts such as credit card balances, medical expenses, unsecured personal loans, and deficiencies resulting from repossessions or foreclosures. This chapter offers a clean slate for individuals overwhelmed by dischargeable debts.

Chapter 11 bankruptcy is primarily designed for businesses that can continue operations but require immediate relief from creditors. This chapter allows companies to renegotiate with creditors and potentially secure more favorable loan terms, enabling them to restructure their debts while maintaining business operations.

Subchapter 5 bankruptcy, also known as the Small Business Reorganization Act of 2019 (SBRA), is a new provision designed to simplify the reorganization process for small businesses. It addresses the challenges small businesses face when attempting to reorganize under traditional Chapter 11 bankruptcy. Subchapter 5 reduces complications such as creditor committees and disclosure statements, making the process more streamlined and cost-effective. The CARES Act temporarily expanded eligibility for this relief to businesses with aggregate debts up to $7,500,000. This provision may serve as a crucial tool for small businesses facing creditor pressure that could impair their ability to operate and recover.

Chapter 13 bankruptcy is a form of personal reorganization that allows individuals to repay a portion of their debts based on their financial capacity. This chapter provides debtors with up to five years to address arrears, potentially enabling them to retain assets such as homes or vehicles. It offers a structured repayment plan tailored to the individual's ability to pay.