There are several different types of bankruptcy, but the most common types for individuals are Chapter 7 and Chapter 13.
Chapter 7 bankruptcy, also known as a fresh start bankruptcy where much of the person's debts will be elimated, which means they don't have to pay them anymore.
Chapter 13 bankruptcy, also known as reorganization bankruptcy, is when a person makes a plan to pay off all or part their debts over a period of three to five years. Chapter 13 is usually used by people who have high incomes and don't qualify for Chapter 7 bankruptcy.
There are also other types of bankruptcy that are less common, such as Chapter 11 bankruptcy (for businesses and individuals with very high levels of debt) and Chapter 12 bankruptcy (for family farmers and fishermen).
Contact a bankruptcy lawyer to discuss which type of bankruptcy is best for you.