Chapter 11 is debt reorganization primarily used by corporations and businesses. Unless you are seeking to file bankruptcy for a business, Chapter 11 won’t apply to you or your situation.
Chapter 7 bankruptcy is what many people think of as “regular” bankruptcy or “plain old” bankruptcy. It is a process by which people can eliminate their debts. If a person qualifies to file chapter 7, they become debt free in just a matter of a few months. You should contact a reputable law firm, such as HS&A, P.C., to see if you qualify for Chapter 7.
Chapter 13 on the other hand is a reorganization of debt. In most cases the person is not required to repay the entire amount owed, only a portion. The amount that is required to be repaid is based upon the person’s ability to re-pay. Everyone pays a different amount back. Whatever amount is not repaid during the Chapter 13 Bankruptcy is then “discharged” or eliminated and the person is debt free. Most people who file Chapter 13 Bankruptcy either have too much income to file a Chapter 7 Bankruptcy or they are behind on their house or car payments and they are attempting to keep those assets. You should contact a reputable law firm, such as HS&A, P.C., to see if you Chapter 13 Bankruptcy is right for you.