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What is the difference between a chapter 7 and chapter 11 bankruptcy?

What's the difference between Chapter 7 and Chapter 11 bankruptcy?

  • I'm not sure which I need to file; I paid in almost $7,700.00 on a $4,200.00 collection and they're telling me I still owe almost $13,000.00... this has to stop... (yes those numbers are correct, sadly... I assume the collection has paid itself and the rest of it is penalties and interest to the debtor; yes there is a judgement in place)

  • Answer:

    You can't file a chapter 11. It's for corporations only. Your choice is between a chapter 7 - a complete liquidation of all debts and a chapter 13, in which you work with the court and creditors to create a payment plan. A 13 is better for your credit rating. gypsygirl is wrong. Bankruptcy law is FEDERAL States can not make their own bankruptcy laws. it's unconstitutional. Congress changed some of the bankruptcy laws about 10 years ago, but chapter 7 still exists. WHY DO YOU PEOPLE INSIST ON ANSWERING QUESTIONS WHEN YOU ARE SO COMPLETELY CLUELESS???

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Chapter 11 is more for business. Chapter 7 is more common, and what most people file

Logan

you might only qualify for chap 13 which requires a partial payment plan as determined by the BK judge

Zarg222

chapter 7 ended in new york state back in 2005 it meant you didnt have to pay it all back. chapter 11 means you an file get it but eventually you will have to pay it back in both cases the bank pays the debtors off with their check and once you file debtors cannot call you to collect they can try one attempt but after you say hey this is what i done and paper proof then they cant harass you . also no credit will be on your record for a good credit score to rent buy loans etc will be marred fro 7 yrs in the state of new york each state might be different

gypsygirl731

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