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

Chapter 11 and Chapter 13 Bankruptcies are two of the main types of bankruptcy options available to individuals in Wisconsin. Both are forms of debt relief that allow the debtor to begin the process of restructuring their debts. Chapter 11 Bankruptcies are primarily for businesses and individuals in Wisconsin with a high amount of debt and revenue. It is the least restrictive form of bankruptcy and requires the debtor to provide a detailed plan of how the debt will be managed and paid off. It also allows the debtor to keep their property and works to preserve the business or other assets of the debtor. Chapter 13 Bankruptcies are primarily for individuals in Wisconsin with a moderate amount of debt. This form of bankruptcy requires the debtor to propose a repayment plan to the court over a period of three to five years, which must be approved. The repayment plan will typically include some portion of the debt being paid off and the rest being discharged. This type of bankruptcy also allows the debtor to keep their property, but certain kinds of debt may not be eligible for discharge. The main difference between Chapter 11 and Chapter 13 Bankruptcies is the kind of debt they are designed to address. Chapter 11 is designed primarily for businesses and individuals with a high amount of debt while Chapter 13 is tailored towards individuals with a moderate amount of debt. Both forms of bankruptcy can provide debt relief to individuals in Wisconsin, but it is important to understand the differences between them in order to determine which is the best option for you.

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

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