The most common form of bankruptcy is the Chapter 7 Bankruptcy, which can be filed by businesses or individuals. It is also called liquidation bankruptcy because some of a debtor's property may be sold (liquidated) to satisfy creditors. When a business is in debt which it cannot pay, it may ask or be forced to file bankruptcy in court under Chapter 7. This usually makes a company stop doing business. Employees often lose their jobs when company files for chapter 7.