system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: How bankruptcy works and what the different chapters of it mean.
gpt
Bankruptcy is a legal process to discharge or reorganize debt.  Under backruptcy, any or all of the following could happen:

* some debt is eliminated (vanishes into thin air)

* some of your property is legally forced to be sold to pay debt

* you may be legally forced to pay off debt in a structured way (e.g. 10% of your paycheck for the next 5 years)

The various chapters of bankruptcy in the US are just different approaches to the same thing.

Chapter 7 is basic bankruptcy.

Chapter 11 is more for corporations.

Chapter 13 is more if you make a regular paycheck and need to structure a way to pay back your debts.

Most people who file for bankruptcy use Chapter 7.