{"id":286958,"date":"2016-04-04T10:41:53","date_gmt":"2016-04-04T15:41:53","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/bankruptcy\/what-is-bankruptcy\/bankruptcy-definition-what-exactly-is-it.html"},"modified":"2023-11-10T15:19:00","modified_gmt":"2023-11-10T20:19:00","slug":"bankruptcy-definition-what-exactly-is-it","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/what-is-bankruptcy\/bankruptcy-definition-what-exactly-is-it.html","title":{"rendered":"Bankruptcy Basics: The Six Different Types of Bankruptcy"},"content":{"rendered":"\n
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Bankruptcy Basics: The Six Different Types of Bankruptcy<\/h1>\n
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\n By Linda Sanabria, J.D.<\/a> | Legally reviewed by Susan Mills Richmond, Esq.<\/a>\n | Last reviewed\n
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The average person can be confused about what bankruptcy is and how it works, but the concept is not as complex as it may seem. Bankruptcy is a generalized term for a federal court procedure that helps consumers and businesses get rid of their debts and repay their creditors. If you can prove you are entitled to it, the bankruptcy court will protect you during your bankruptcy proceeding.<\/p>\r\n

In general, bankruptcies can be categorized into two types:<\/p>\r\n