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

A Chapter 11 bankruptcy is a reorganization of debt for businesses or individuals who have large amounts of debt they cannot pay. It allows debtors to restructure their finances while keeping their assets. In Chapter 11, debtors can reduce their debt, renegotiate payment terms, and create a repayment plan to repay creditors. A Chapter 13 bankruptcy, on the other hand, is a repayment plan for individuals with a steady income who are unable to pay their debts in full. This type of bankruptcy requires individuals to draft a repayment plan that lasts three to five years and repay their creditors over this time period. Chapter 13 does not allow debtors to reduce their debts. The main difference between a Chapter 11 bankruptcy and a Chapter 13 bankruptcy is the eligibility requirements. To qualify for a Chapter 11 bankruptcy, debtors must have a large amount of debt and be unable to pay their debts. To qualify for a Chapter 13 bankruptcy, debtors must be individuals with a steady income and be unable to pay their debts in full. In addition, Chapter 11 debtors can reduce their debt, renegotiate payment terms, and create a repayment plan while Chapter 13 debtors must draft a repayment plan over a three to five year period.

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

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