There are basically three kinds of bankruptcy that private individuals or corporations can file based on current US bankruptcy laws, and it would be best to be familiar with these if you are thinking of filing for bankruptcy because of your financial status. Corporations are more likely to file for a Chapter 11 bankruptcy rather than a Chapter 13 or 7, as these two are advantageous to private individuals. In a Chapter 7 bankruptcy, you are required by the court to surrender all non exempt assets to an appointed trustee for liquidation. The generated funds will then be used to pay off your debts and other financial obligations. Keep in mind however that most bankruptcy laws have specific provisions that vary from state to state, and it would be wise to get as much information as you can from your state’s website before you file for a bankruptcy claim so you will know what to expect.