Which bankruptcy chapter is typically utilized by high-income earners?

The chapter of bankruptcy that is typically utilized by high-income earners is Chapter 11. This chapter is often associated with businesses, but it can also apply to individuals who have significant income and assets. High-income earners may choose Chapter 11 because it allows for a reorganization of their debts while continuing to operate their business or manage their financial affairs. This process can provide more flexibility and a better opportunity to consolidate and restructure debts without liquidating assets.

In contrast, Chapter 7 is designed for individuals with limited income who cannot pay back their debts, and it typically involves liquidation of assets. Chapter 13 is designed for individuals with regular income who want to keep their property while making payments over time and is limited by certain debt thresholds that high-income earners may surpass. Chapter 15 is related to cross-border insolvency and is not commonly used by personal high-income earners. Therefore, Chapter 11 is the most suitable option for high-income earners seeking bankruptcy protection and a way to manage their financial challenges effectively.