What is the difference between chapter 7, 11 and 13 bankruptcy?

Chapter 11 and Chapter 13 BKs have to do with the effort to organize the debt, and to pay some, most, or all of it back over some prolonged schedule per the rules set down by the judge. Chapter 11 is for business and Chapter 13 is for individuals. A successful chapter 11/13 will dramatically reduce the amount of calls the debtor receives from his creditors, and to reduce things such as pentalty fees and exhorbinant interest, allowing the debtor to regain a foothold in life. Sometimes, reorginazation is not possible, and the debt is so great that Chapter 7 bk is pursued, which seeks to eliminate (wipe clean) all of the debt. Assets which can be taken to pay back the debt are liquidated, but seldom will the creditors see more than 10% of their monies repaid. But better something than nothing in a situation where the debtor is too far deep.

Chapter 7 bankruptcy is the commonest denotation of bankruptcy. It stands for waiving or canceling of debts that you have incurred. As an individual, you can select between Chapter 13 or Chapter 7 bankruptcy. Selecting between the two is not easy. The bankruptcy court will study your circumstances before deciding which type of bankruptcy is applicable to you. http://get-out-of-the-debt-trap.com/category/Information-on-Chapter-7-Bankrupt.html Chapter 13 permits an US resident to reorganize and restructure their finances. It allows you start afresh and get your finances back on the track. The bankruptcy court will supervise and authorize the entire process of overhauling your financial situation. While filing for bankruptcy under Chapter 13, you have to draw up a plan of action meant to pay your dues within the next 3 to 5 years and submit to the bankruptcy court. You should clear your dues as much as possible at frequent intervals. Filing under Chapter 13 will protect you against the undue pressure exerted on you by your lenders to pay your debts. http://get-out-of-the-debt-trap.com/category/Information-on-Chapter-13-Bankrupt.html