The bankruptcy law has two basic approaches to resolving a debtors financial problems liquidation, and set out as follows -

A) Chapter 7 of the statute governs liquidation in which generally, a debtor surrenders all assets from which creditors are paid as much as possible and Individual debtors generally have all unpaid debts discharged or forgiven.

B) Chapter 11 of the statute governs reorganization in which the debtor attempts to restructure the financial situation so creditors can be substantially paid over time. The key to a successful reorganization is the courts approval of a reasonable confirmation plan.

C) Chapter 13 of the statute governs adjustment of debts. in which the debtor must be an individual who has regular income and who has unsecured debts not exceeding $394,726, and the secured debts cannot exceed $1,184,200. A plan of repayment must be approved.and the unsecured creditors must receive at least as much as they would under a Chapter 7 liquidation proceeding.

D) All the above