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

Chapter 11 bankruptcy and Chapter 13 bankruptcy are two kinds of bankruptcy filings available to individuals in Mississippi. Each type of bankruptcy has its own set of rules and requirements. The primary difference between Chapter 11 and Chapter 13 bankruptcy is that Chapter 11 is generally intended for businesses while Chapter 13 is reserved for individuals. This means that individuals filing for Chapter 11 must meet certain criteria related to their business size and operations in order to qualify. Chapter 13 bankruptcy is designed for individuals who have a regular source of income and who are able to repay their debts over time. Under Chapter 13, an individual creates a repayment plan that is approved by the court and followed closely. The repayment plan must be adhered to for three to five years in order for the individual to receive a discharge of their debts. In contrast, Chapter 11 bankruptcy is designed for business owners who need help restructuring their finances in order to keep their business afloat. It is usually a longer and more complex process than Chapter 13. Under Chapter 11, the business owner creates a reorganization plan that is approved by the court and creditors. The plan must be followed in order for the business to survive and the business owner to receive a discharge of their debts. Both Chapter 11 and Chapter 13 bankruptcies are available in Mississippi and have their own distinct requirements and processes. Individuals should be familiar with the differences between the two types of bankruptcy when determining which might be best for their situation.

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

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