There aren't exactly "types" of bankruptcy.
  They are called chapters.
  There are several different chapters that don't exactly go in order like 1, 2, 3, 4, ...
  The four main chapters of bankruptcy are chapters 7, 11, 12, and 13.
  Here we will discuss each one further.
Chapter 7 bankruptcy is probably what you are most familiar with.
  It is liquidation and is often used by individuals.
  Liquidation means they will take all your assets, except for those that are exempt from this process, and liquidate them.
  They will then use that money to pay off as much of your debt as possible.
  Finally, the remainder of your debt will be discharged.
  Debt including student loans, alimony, child support, taxes, etc.
  can't be discharged.
Chapter 13 is the reorganization of debt.
  Instead of liquidating your loans and discharging your debts, your debt is reorganized so that it is easier and possible to pay off.
  Your trustee will continue to pay off your debt and you pay your trustee.
  You will still pay debt payments as before for secured loans such as a mortgage.
  This is better because you don't have to lose any of your things and assets.
Chapter 11 and 12 are very similar to chapter 13 except that chapter 12 is for farmers and 11 for businesses and corporations.
  This is ideal because farmers don't lose any of their equipment and businesses can keep running their business because they retain their assets.
  If all there assets were liquidated, they wouldn't be able to keep making money to pay off any other debt.
  After that, they could continue to run their business and would not have to close down.