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

In Florida, there are two types of bankruptcy that can be filed: a Chapter 11 and a Chapter 13. Both forms of bankruptcy are designed to help individuals and businesses reorganize and pay off their debts. The main difference between a Chapter 11 and Chapter 13 bankruptcy is that Chapter 11 is used for businesses or corporate entities, while Chapter 13 is only used for individuals. Chapter 11 is more complex as it requires the debtor to file a reorganization plan and must include all creditors in the process. With Chapter 13, the court works with the individual debtor to establish a debt repayment plan with the creditors, meaning the debtor can make one monthly payment to the court to be distributed among their creditors. Additionally, Chapter 13 is designed to stop foreclosure proceedings. Another notable difference between Chapter 11 and Chapter 13 is that Chapter 13 can be completed in as little as three years, while Chapter 11 can take up to 5 years. The timeline depends on the complexity of the individual or businesses financial situation. Overall, both Chapter 11 and Chapter 13 bankruptcy can help individuals and businesses reorganize and pay off their debt in Florida. However, it is important to understand which option may be more suitable for a particular financial situation.

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

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