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

The two most common types of bankruptcy that can be filed in Mississippi are Chapter 11 and Chapter 13. Both types of bankruptcy are designed to help individuals or businesses manage their debts and find financial stability. Chapter 11 bankruptcy is known as a reorganization bankruptcy, and is primarily used by businesses and commercial entities. It allows the debtor to retain possession of their assets while restructuring or reorganizing their debt. Once the process is complete, the debtor can exit with a debt-free, reorganized financial situation. Chapter 13 bankruptcy is also known as a repayment plan. This type of bankruptcy is typically used by individuals with higher incomes. This type of bankruptcy allows the debtor to create a repayment plan to repay their creditors over a three to five year period. This repayment plan is designed to reduce the amount of debt owed and provide the debtor with an affordable way to pay the debt. Although the two types of bankruptcy have different purposes, the main goal of both is the same: to reorganize or reduce debt and allow the debtor to gain financial stability. Depending on your individual situation, Chapter 11 or Chapter 13 bankruptcy may be the right option for you.

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

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