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

The difference between a Chapter 11 and a Chapter 13 bankruptcy in Texas is the way in which debtors must resolve their debts. Chapter 11 Bankruptcy is the most complicated process, and it is usually used by businesses or individuals with a large amount of debt who need to restructure debt and keep their businesses running. In a Chapter 11 Bankruptcy, debtors must submit a plan to the court outlining how they intend to pay their creditors. The court must approve the plan, and if it does, the debtor must follow the plan to successfully discharge their debts. Chapter 13 Bankruptcy is more suitable for individuals, rather than businesses, and typically involves the filer paying a portion of their debts, rather than discharging them. In a Chapter 13 Bankruptcy, the debtor must propose a payment plan to the court that outlines how they will pay their creditors over a period of three to five years. The court must approve the plan, and if it does, the filer must make the payments as outlined in the plan to have their remaining debt discharged.

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

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