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This chapter of the Bankruptcy Code generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.

If you are behind on your financial obligations, filing Chapter 13 bankruptcy is an effective tool to help you structure a plan to pay back your debts in a timely manner. 4. Chapter 13 allows you to keep your property as long as you are making payments.

In a Chapter 7 bankruptcy, assets are liquidated to pay creditors, with secured debts having priority over unsecured debts. In a Chapter 11 bankruptcy, a company is restructured under the supervision of a trustee appointed by the court. The company continues to operate, paying its debts back with future earnings.

Chapter 11 can allow a business that is experiencing serious financial difficulties to regroup and get back on track. However, it is complex, costly, and time-consuming. For these reasons, a company must consider Chapter 11 reorganization only after careful analysis and exploration of all other possible alternatives.

Here's an explanation for how we make money . Chapter 13 (also called a reorganization) bankruptcy is a legal process that allows you to restructure your debt so that it's more manageable. During the process, you and your creditors will design a repayment plan that lasts from three to five years.

In Chapter 13 bankruptcy, you must devote all of your "disposable income" to the repayment of your debts over the life of your Chapter 13 plan. Your disposable income first goes to your secured and priority creditors. Your unsecured creditors share any remaining amount.