When a business is unable to pay off its debts, it may choose or be forced to file for bankruptcy. There are three types of Commercial Bankruptcy: Chapter 7, Chapter 11, and Chapter 12.  Chapter 7 involves complete liquidation of assets and going out of business; Chapter 12 is designed specifically for family farmers or fisherman. The most common type of Commercial Bankruptcy is Chapter 11, which involves a reorganization of assets in an attempt to pay off debts and return to profitability. During Chapter 11 bankruptcy proceedings, the day to day functions of the business carry on without change, while more significant transactions are subject to the approval of the court. Throughout the court proceedings, creditors provide input, but final confirmation of a reorganization plan is at the sole digression of the court.