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

Chapter 11 and Chapter 13 bankruptcies are different types of bankruptcies available under Kansas law. Chapter 11 bankruptcy is designed for businesses who are unable to repay their debts and need to reorganize their finances to become profitable again. The process involves the business working with creditors to make a plan to repay their debts over time. Chapter 13 bankruptcy is designed for individuals who are unable to pay their debts and need to reorganize their finances. The key difference between the two bankruptcies is that Chapter 11 deals with reorganizing business debts, while Chapter 13 deals with reorganizing individual debts. A Chapter 11 bankruptcy reorganizes the business’s debts, not erasing them. The business must continue operations and file a plan with the court outlining how it will pay its creditors. This plan must be approved by the court and the creditors, and will typically involve reducing debt and restructuring payments. Chapter 13, on the other hand, is not for businesses. The debtor must submit a repayment plan to the court outlining how he or she will pay off the debt over time. This plan may involve reducing debt and restructuring payments. It must be approved by the court and the creditors. In conclusion, the key difference between Chapter 11 and Chapter 13 bankruptcies in Kansas is that Chapter 11 deals with reorganizing business debts, while Chapter 13 deals with reorganizing individual debts.

Related FAQs

Can I still obtain a loan after filing for bankruptcy?
Are there any assets that I cannot keep after filing for bankruptcy?
Do I have to pay taxes on any discharged debt?
What types of debt can be discharged through bankruptcy?
Are there any types of debt that will survive a bankruptcy discharge?
Are there any assets that I will be required to sell when filing for bankruptcy?
What are the consequences of not filing for bankruptcy?
What is the difference between secured and unsecured creditors?
How does the bankruptcy court decide which creditors will get paid?
Are there any debts that cannot be discharged in bankruptcy?

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

Related FAQs

Related Blog Posts