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

At a 10th-grade level, the difference between a Chapter 11 bankruptcy and a Chapter 13 bankruptcy can be described as follows. Chapter 11 bankruptcy in Virginia is a type of bankruptcy used by businesses and individuals to reorganize their debt and restructure their finances. With Chapter 11 bankruptcy, the debtor will put together a repayment plan to pay back some, or all, of their debt. While filing Chapter 11, the debtor stays in control of their business and operations and continues to pay creditors during the repayment process. On the other hand, Chapter 13 bankruptcy in Virginia is a type of bankruptcy designed to help individuals who do not qualify for Chapter 11 reorganization. With Chapter 13 bankruptcy, the debtor must propose a repayment plan to the court detailing how they will pay back all, or a portion, of their debt over the course of three to five years. Creditors do not get paid during the repayment period and the debtor is not allowed to acquire any new debt. In summary, the difference between a Chapter 11 bankruptcy and a Chapter 13 bankruptcy in Virginia is that Chapter 11 allows the debtor to stay in control of their business and operations while repaying their creditors, while Chapter 13 requires that the debtor propose a repayment plan and refrain from obtaining any new debt until their repayment plan has been fulfilled.

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

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