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

Chapter 11 and Chapter 13 bankruptcies are both forms of consumer debt relief in South Carolina. The main difference between the two is the goal of the filing. A Chapter 11 bankruptcy is designed to provide businesses with an opportunity to reorganize their finances and restructure their debt. This is done by establishing a payment plan over a period of months, or even years, and allowing businesses to return to profitability. It is a more complex process than a Chapter 13, because businesses must show that they can manage their finances effectively and prove that they can pay off their debts over time. A Chapter 13 bankruptcy, on the other hand, is designed for individuals who are unable to pay off their debts in full. This form of bankruptcy allows individuals to create a payment plan to pay back their creditors over a prescribed amount of time, typically 3 to 5 years. This plan usually calls for lower monthly payments and lowered interest rates, allowing the individual to pay back their debts in more manageable amounts. In South Carolina, both Chapter 11 and Chapter 13 allow debtors to reorganize their finances and create a payment plan to pay back creditors. While the goal of a Chapter 11 filing is to help businesses reorganize their finances, the goal of a Chapter 13 is to help individuals pay off their debt in a more manageable way.

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

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