For years ending June 30. Covers only bankruptcy cases filed under the Bankruptcy Reform Act of 1978. Bankruptcy: legal recognition that a company or individual is insolvent and must restructure or liquidate. Petitions ""filed"" means the commencement of a proceeding through the presentation of a petition to the clerk of the court; ""pending"" is a proceeding in which the administration has not been completed

TERMS BANKRUPTCY A legal procedure for dealing with debt problems of individuals and businesses; specifically, a case filed under one of the chapters of title 11 of the United States Code (the Bankruptcy Code). BUSINESS BANKRUPTCY A bankruptcy case in which the debtor is a business or an individual involved in business and the debts are for business purposes. CHAPTER 7 The chapter of the Bankruptcy Code providing for liquidation, i.e., the sale of a debtors nonexempt property and the distribution of the proceeds to creditors. CHAPTER 11 A reorganization bankruptcy, usually involving a corporation or partnership. (A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.) CHAPTER 12 The chapter of the Bankruptcy Code providing for adjustment of debts of a family farmer, as that term is defined in the Bankruptcy Code. CHAPTER 13 The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income. (Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.) LIQUIDATION A sale of a debtors property with the proceeds to be used for the benefit of creditors.