There are two main categories under Bankruptcy laws that an individual may file for, Chapter 7 Bankruptcy and Chapter 13 Bankruptcy. Chapter 7 Bankruptcy is the most common type of category that an individual may be qualified. An individual is qualified to file under Chapter 7 is he or she has a debt that he or she can’t pay for and has no choice but to sell some properties that the state allows. In cases where the individual has no property at all and the state has proven that incapability to pay, the individual is cleared of the debt without the need to pay for the debt. Meanwhile, Chapter 13 bankruptcy information states that an individual who has a job and earns a salary sufficient to cover daily expenses and still pay for a portion of the debt must file under this category. A portion, if not all, of the debt must be paid in a maximum term of 5 years while the individual keeps all his or her properties in his possession.