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

Chapter 11 and Chapter 13 bankruptcies are both types of bankruptcy filings available in Colorado. They are different in a few ways, however. A Chapter 11 bankruptcy allows a business or individual to reorganize their debt. This allows them to remain in control of their business or assets and negotiate a repayment plan for their debt. This option is more commonly used by businesses. A Chapter 13 bankruptcy allows individuals to pay off their debt through a repayment plan administered by the court. This option requires the individual to make regular payments to creditors for a 3 to 5 year period. The end result is the discharge of much of the debt. Chapter 11 bankruptcies are more complex and expensive than Chapter 13 bankruptcies. If an individual chooses to file for a Chapter 11 bankruptcy, they must present a plan to a court to demonstrate how they plan to pay back their debt. In contrast, Chapter 13 bankruptcies are simpler and can be completed without the help of a lawyer. Furthermore, individuals who file a Chapter 13 bankruptcy are able to keep certain assets, such as a house or a car. Ultimately, it is up to individuals to decide which type of bankruptcy best fits their situation. Depending on the situation, an individual may be better off with a Chapter 11 or a Chapter 13 bankruptcy.

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

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