Types of Bankruptcy

1. Chapter 7 Bankruptcy: Also known as "liquidation bankruptcy," Chapter 7 involves the sale of non-exempt assets to repay creditors. Individuals or businesses seeking Chapter 7 bankruptcy must pass a means test, demonstrating that their income falls below the state median or lack the disposable income to repay their debts.
2. Chapter 11 Bankruptcy: This type of bankruptcy primarily aims at businesses and allows them to reorganize their debts while continuing operations. Chapter 11 bankruptcy allows the debtor to propose a plan to repay creditors over time. It allows businesses to streamline operations, renegotiate contracts, and restructure their debts to achieve long-term financial stability.
3. Chapter 13 Bankruptcy: Chapter 13 bankruptcy is an option for individuals with a regular income source who wish to restructure their debts while retaining their assets. It involves the creation of a repayment plan that spans three to five years, during which the debtor makes regular payments to a trustee who distributes the funds to creditors. 

Implications of Bankruptcy

1. Credit Score and History: Bankruptcy significantly impacts an individual's credit score and remains on their credit report for a specified period. 
2. Asset Liquidation: This can result in the loss of valuable possessions, although certain assets, such as necessary household items, may be exempt under state or federal law.
3. Business Operations: For businesses undergoing bankruptcy, Chapter 11 allows them to continue operating while reorganizing their finances. 
4. Public Record: Bankruptcy filings are a matter of public record, meaning they can be accessed by anyone who searches for them. 
5. Future Financial Planning: Bankruptcy allows individuals and businesses to start afresh financially. 

It's crucial to note that bankruptcy laws and regulations may vary between counties and jurisdictions. Consulting with a qualified bankruptcy attorney or financial advisor is highly recommended to understand the specific details and implications of bankruptcy in your situation.