What is the difference between Chapter 7 and Chapter 11 Bankruptcy?

Chapter 7 Bankruptcy Law and Chapter 11 Bankruptcy Law both provide individuals and businesses with a legal way to reduce or eliminate debt. However, there are some important differences between the two. Chapter 7 is intended for individuals or married couples who have the ability to repay a portion of their debts. It enables them to liquidate assets like a home, vehicle, and other assets to pay off creditors. It also offers debtors protection from creditors and offers a fresh start. Chapter 11 is intended for businesses, including corporations and partnerships. It enables businesses to restructure and develop plans to pay off creditors over time. It does not liquidate assets, but instead allows businesses to continue operating. It also offers protection from creditors and is often used by large businesses who are unable to pay their debts. In summary, the main differences between Chapter 7 and Chapter 11 Bankruptcy are that Chapter 7 is for individuals who can pay back a portion of their debt, while Chapter 11 is for businesses who need to restructure their debt and continue operating. Both offer debtors protection from creditors and offer a fresh start.

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What is the difference between Chapter 7 and Chapter 11 Bankruptcy?
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What is the difference between Chapter 7 and Chapter 11 Bankruptcy?

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