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

Chapter 11 and Chapter 13 bankruptcies are two types of bankruptcy proceedings available to those who qualify in Oklahoma. A Chapter 11 bankruptcy is often used by businesses, and gives the company the ability to reorganize its debt. It also allows the business to develop a plan to pay back creditors in a way that is feasible in their current financial situation. This type of bankruptcy usually involves a court-appointed trustee who is responsible for overseeing the reorganization plan and reporting to the court. A Chapter 13 bankruptcy is usually filed by individual debtors. This type of bankruptcy allows the debtor to create a repayment plan that is approved by the court. The debtor must agree to make payments for a certain period of time, which typically ranges from three to five years. During this period, the debtor typically has to fulfill their repayment plan as agreed and remain current on their payments in order to get the debt discharged. The primary difference between the two types of bankruptcy is that a Chapter 11 is for businesses and a Chapter 13 is for individuals. Additionally, Chapter 11 bankruptcy allows for reorganization of debt while Chapter 13 bankruptcy focuses on debt repayment.

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

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