2006-10-17 10:42:08 · 6 answers · asked by b.benson 1 in Business & Finance ➔ Personal Finance
A Chapter 7 filing means that the business or individual sells all the assets and gives the proceeds to the creditors.
Chapter 11 is when a business or individual "reorganizes" and tries to restructure so they can repay or get out of bankruptcy.
2006-10-17 10:48:34 · answer #1 · answered by stockmarketwiz21 2 · 0⤊ 0⤋
Chapter 7 bankruptcy means that all of your debt is essentially erased, whereas in chapter 13 you are still responsible for either all or at least a portion of of your debt. In chapter 13 the court will structure a repayment plan that will fit your situation and relieve as much pressure off your budget as possible.
2006-10-17 10:51:11 · answer #2 · answered by Carson 3 · 0⤊ 0⤋
desabol gave the specifics but one thing to keep in mind is that you will have a bankruptcy forever. Some applications will ask if you have _ever_ filed bankruptcy, not just in the last 7-10 years so unless you lie (which I wouldn't recommend) then you'll need to answer yes which can bring it's own set of baggage. There are some sources I've attached for further reading
2016-05-21 21:44:07 · answer #3 · answered by Anonymous · 0⤊ 0⤋
chapter 7 is for individual wishing to get rid of unsecured debt, you are only allowed to keep what you can pay for, all other allowable debt is no longer yours. you cannot discharge Federal taxes that have not been file, child support, court ordered support payments of any type, : the list changes about every 2-3 years
discharge is usually done within 90 days after your creditors meeting.
small unincorporated business can also use this chapter under certain circumstances,
chapter13 is for businesses that get into financial difficulty, they are allowed to set up a repayment schedule which is approved by the court and the major creditors . it is a long drawn out process
which allows the business as long as it meets its obligations under he approved (confirmed) plan
2006-10-17 10:56:10 · answer #4 · answered by connie m 2 · 0⤊ 0⤋
chapter 7 you can keep a house and car and everything else goes. you don't have to pay anything back except for the car and house if you owe anything. Chapter 13 you have to pay all your creditors back a small %. All of your money is then managed by the courts.
2006-10-17 10:51:58 · answer #5 · answered by Chris T 2 · 0⤊ 0⤋
chapter 7 is business, chapter 13 is individual
chapter 11 is where a business can re-org debts, w/ approval from creditors, to repay
2006-10-17 11:08:52 · answer #6 · answered by dwalkercpa 5 · 0⤊ 0⤋