Which bankruptcy chapter involves a reorganization of finances?

The correct choice involves understanding the different chapters of bankruptcy and their specific functions. Chapter 13 bankruptcy is specifically designed for individuals with regular income who need to reorganize their debts and repay them over time, typically over a period of three to five years. The debtor proposes a repayment plan to make installments to creditors, allowing them to keep their assets while meeting their financial obligations.

In contrast, while Chapter 11 is also a reorganization chapter, primarily used by businesses to rework their debts while continuing operations, it is not tailored for individual consumers like Chapter 13 is. Chapter 9 deals with the reorganization of municipalities, which isn’t applicable to individuals or businesses. Chapter 7, on the other hand, leads to liquidation rather than reorganization, where a debtor's non-exempt assets are sold off to pay creditors.

Thus, Chapter 13 is the answer as it specifically facilitates a structured reorganization of individual debts, allowing individuals to manage and pay back what they owe while still retaining their assets.