What is the difference between a Chapter 11 and a Chapter 13 bankruptcy?

In California, two of the most common types of bankruptcy are Chapter 11 and Chapter 13. Chapter 11 is a type of bankruptcy that allows businesses to reorganize their finances, restructure their debts, and continue operating. This form of bankruptcy allows a business to remain in control of their assets and continue to operate their business. Generally, Chapter 11 bankruptcies are more complicated, time consuming, and expensive than Chapter 13 bankruptcies. On the other hand, Chapter 13 bankruptcy is a type of bankruptcy that allows individuals to restructure and repay their debts over three to five years. Debtors will have to submit a repayment plan to the court, which must be accepted by the court and creditors before it can go into effect. Unlike Chapter 11 bankruptcy, debtors will not be allowed to remain in control of their assets, and must adhere to the repayment plan the court has approved. The key difference between Chapter 11 and Chapter 13 bankruptcies is the purpose they serve. Chapter 11 is intended for businesses, while Chapter 13 is meant for individuals. With Chapter 11, businesses can keep their assets and continue to operate their business. On the other hand, Chapter 13 debtors must adhere to the agreed upon repayment plan and do not have control of their assets.

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What is the difference between a Chapter 11 and a Chapter 13 bankruptcy?

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