A more thorough explanation:

Bankruptcy is a legal process that allows individuals and organizations to reduce or eliminate certain debts. It also provides a timeline for the repayment of non-dischargeable debts over time and permits individuals and organizations to repay secured debt. Bankruptcy law is contained in Title 11 of the U.S. Code and is supervised by and litigated in Bankruptcy Court, which is part of the Federal District Court system.

• Chapter 7: Provides for the discharge of unsecured debt, such as debt from credit cards and personal loans. Secured debt is typically unaltered, meaning that the collateral securing the debt remains in the debtor’s possession as long as timely payments are made.
• Chapter 9: Governs the reorganization of municipalities and related local entities, such as county-owned hospitals and school districts. Individuals and corporations cannot file for bankruptcy under Chapter 9.
• Chapter 11: Provides several options to reorganize debt, e.g., by repaying some debts, discharging others, and restructuring the remainder. Although individuals may file for Chapter 11 relief, the relatively high filing fees and administrative costs lead most individuals to favor Chapter 7 or Chapter 13 bankruptcy proceedings.
• Chapter 12: Provides for the restructuring of debt for family farmers. Only family farmers are eligible.
• Chapter 13: Permits the discharge of some debt, as well as the repayment of other debt over a period of three to five years. It may also permit a reduction in principal owed on secured debt, or the elimination of these debts altogether. Only individuals may file under this chapter, and there are some limited income and debt qualifications.

For example, Chapter 7 bankruptcy allows individuals to discharge unsecured debt, such as credit card debt and personal loans, while keeping their secured debt, such as a mortgage or car loan, as long as they continue to make timely payments. Chapter 13 bankruptcy, on the other hand, allows individuals to repay some debts over a period of three to five years while discharging others.

• Czyzewski v. Jevic Holding Corp.: The U.S. Supreme Court held that a bankruptcy court cannot order the distribution of a debtor's assets in a way that contradicts the order of payment in a bankruptcy liquidation.
• Midland Funding, LLC v. Johnson: The Court ruled that debt collectors can use bankruptcy proceedings to try to collect liabilities that are so old the statute of limitations has expired, depending on state law.
• Stern v. Marshall: The U.S. Supreme Court held that bankruptcy courts have very limited jurisdiction and cannot enter a final judgment on a bankruptcy-related claim.

For example, in Czyzewski v. Jevic Holding Corp., the Supreme Court affirmed the Chapter 11 absolute priority rule, which stipulates the order of payment in a liquidation. In Midland Funding, LLC v. Johnson, the Court ruled that debt collectors can use bankruptcy proceedings to try to collect liabilities that are so old the statute of limitations has expired, depending on state law. In Stern v. Marshall, the Court held that bankruptcy courts have very limited jurisdiction and cannot enter a final judgment on a bankruptcy-related claim.