What is the difference between Chapter 7, Chapter 11 and Chapter 13 bankruptcy?
Karyn A.
Austin, TX
They refer to different parts, called chapters, of the bankruptcy law. Individuals may use Chapter 7 or Chapter 13. Chapter 7 bankruptcy gives you a fresh start by discharging your unsecured debts (such as credit cards and medical bills). It is sometimes called liquidation. Businesses may used Chapter 7 bankruptcy to liquidate or Chapter 11 bankruptcy to reorganize their business and repay their debts over a period of years under a "plan." Business that want to continue as going concerns must use Chapter 11 bankruptcy.
<< Home