A chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code.
Chapter 9 is one of the more obscure or lesser known types of bankruptcy. In fact, most people will go their whole lives without ever having heard of or been affected by a Chapter 9 bankruptcy. But Chapter 9 is a vital part of the Bankruptcy Code for the entities that have to make use of it.