What is a common type of bankruptcy for individuals that relieves most types of debts?

The common type of bankruptcy for individuals that relieves most types of debts is referred to as Chapter 7 bankruptcy, particularly when it is described as a no-asset bankruptcy. In this context, Chapter 7 allows individuals to alleviate unsecured debt such as credit card debt, medical bills, and personal loans, providing a fresh financial start. When someone qualifies for a no-asset Chapter 7 bankruptcy, it typically means that they do not own any significant non-exempt assets that the bankruptcy trustee could liquidate to pay creditors. As a result, most of their debts can be discharged, meaning they are no longer legally obligated to pay them.

Chapter 11 bankruptcy generally caters to businesses rather than individuals, allowing them to reorganize and restructure their debt while continuing operations. Chapter 13 bankruptcy involves a repayment plan and is designed for individuals with a regular income who can repay their debts over time, rather than discharging most of them immediately. Chapter 12 is tailored for family farmers or fishermen to reorganize their debts, similar to Chapter 13, but with a focus on the unique needs of those industries. Thus, Chapter 7 no-asset bankruptcy stands out as the most relevant option for individuals seeking to discharge the majority of their debts and is the