What is the difference between Chapter 7, 11, 12 & 13 cases?
Chapter 7 – Liquidation: This chapter of the U.S. Bankruptcy Code provides for an orderly court-supervised means of selling certain assets to pay your creditors. In a Chapter 7 case, a trustee is appointed by the U.S. Bankruptcy Court to take charge of your “estate” consisting of all your assets. The law may allow you to keep some of your property. The trustee will sell the rest to pay your creditors. Unless someone objects, some or all of your debts will be discharged within a few months after the bankruptcy petition is filed. Chapter 11 – Reorganization: This Chapter of the U.S. Bankruptcy Code is available to individuals, businesses and other entities, but is primarily intended to allow an ongoing business to restructure its debts. Successful reorganization is dependent on the debtor filing what is called a “reorganization plan” and obtaining the acceptance of creditors and approval by the court for such a plan. Chapter 12 – Family Farmer: This Chapter of the U.S. Bankruptcy Code is
