(Optional) Identify the reasons bankruptcy laws were enacted.

Identification should cite

• protection afforded by the U.S. Constitution
• the shielding of consumers from irreconcilable debt
• the effects that filing bankruptcy can have on the creditor and the debtor.

 The most common types of bankruptcy include

• Chapter 11 (i.e., reorganization for businesses)
• Chapter 13 (i.e., reorganization for individuals)
• Chapter 7 (i.e., straight bankruptcy for individuals).