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

The primary difference between a Chapter 11 bankruptcy and a Chapter 13 bankruptcy in South Carolina is the type of filer. A Chapter 11 bankruptcy is designed for businesses, while a Chapter 13 bankruptcy is designed for individuals. A Chapter 11 bankruptcy is complex and expensive, and involves reorganizing and restructuring the filer’s debt in order to pay back creditors over time. This type of bankruptcy allows a business to remain open and operational while it repays its debts. A Chapter 13 bankruptcy, on the other hand, is designed specifically for individuals. This type of bankruptcy allows the filer to keep their property and spread out their payments over a period of three to five years, with a finite repayment plan. It also allows for the filer to clear up any arrears they may have on secured debt such as mortgages or cars. The bankruptcy process for each type also varies. Chapter 11 bankruptcies are supervised by a court and must meet certain criteria, such as obtaining approval from the court in order to approve reorganization plans. Chapter 13 bankruptcies require the filer to submit their repayment plan to the court for approval. Overall, the primary difference between a Chapter 11 bankruptcy and a Chapter 13 bankruptcy in South Carolina is the type of filer. Chapter 11 bankruptcies are designed for businesses, while Chapter 13 bankruptcies are designed specifically for individuals.

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

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