Basically, Chapter 7 bankruptcy applies to individuals, partnerships, or corporations. Unlike chapter 11 or chapter 13 bankruptcy, a regular payment schedule is not planned; instead, the individual's assets are gathered and sold, and the profits are paid to the individual creditors.
A person may be a debtor under chapter 7 of this title only if such person is not -
- a railroad;
- a domestic insurance company, bank, savings bank,
cooperative bank, savings and loan association, building and loan
association, homestead association, a small business investment
company licensed by the Small Business Administration under
subsection (c) or (d) 1 of section 301 of the Small
Business Investment Act of 1958, credit union, or industrial bank
or similar institution which is an insured bank as defined in
section 3(h) of the Federal Deposit Insurance Act; or
- a foreign insurance company, bank, savings bank,
cooperative bank, savings and loan association, building and loan
association, homestead association, or credit union, engaged in
such business in the United States.
-- United States Code, Chapter 1, Sec. 109
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