Basic knowledge of bankruptcy law is very important, if you have worked out all the alternatives and have failed to get any better solution, and are finally going ahead to file a court petition for bankruptcy. This is the last thing you can do to save your financial life. In order to make things easier for you to understand, the bankruptcy code has categorized the various bankruptcy laws in various chapters. The main chapters in this regard include chapter 7, chapter 11, chapter 12, chapter 13, and chapter 17. If you are an individual and have trapped yourself in heavy piles of debts, you may like to go for the personal bankruptcy, which is covered under the chapter 7 and chapter 11. In addition to personal bankruptcy, the chapter 7 bankruptcy is also used by the business corporations.