Making the Decision to File Bankruptcy
The Lanigans explain how Chapter 11 Bankruptcy and Chapter 13 Bankruptcy differ. Chapter 13 bankruptcy and Chapter 11 bankruptcy are both plans of reorganization but they have very specific differences. When you reach the point where you are considering bankruptcy contact Winter Park, Florida, lawyer Roddy Lanigan for a meeting to determine your bankruptcy options. The final decision is yours but you have to qualify and find out based on your finances which bankruptcy is optimal.
Chapter 11 Bankruptcy
Chapter 11 is usually for businesses or for individuals who owe much more than the average person. Chapter 11 allows businesses to get on a payment plan and try to get out of debt while still operating as a viable company.
Section §109(d) governs Chapter 11 which gives the same list found in §109(b) for Chapter 7 (you can file in Chapter 11 only if you can file under Chapter 7) except Chapter 11 includes railroads, uninsured banks and banks organized under the Federal Reserve Act.
Chapter 11 is very loose, can be expensive and complex but this flexibility allows the companies to negotiate and can take a lot of time.
In addition, Chapter 11 does not require a trustee and the person running the bankruptcy is known as the “debtor in possession.” This allows any party of interest to file a plan which is then voted on by the creditors to determine which one best serves their interests.
Chapter 13 Bankruptcy
Conversely, Chapter 13 bankruptcy is known as the “working man’s or woman’s plan” and focuses on average consumers who are not looking to liquidate. Only “individuals” with “regular income” whose debts fall within listed limits of 109(e) are eligible for Chapter 13.
Chapter 11 vs. Chapter 13 Bankruptcy
Chapter 13 bankruptcy is very structured and easier to afford than Chapter 11. Unlike Chapter 11, the plan in Chapter 13 is filed by the debtor and is not voted on by the creditors. Furthermore, under Chapter 13 the debtor pays a trustee to distribute payments pursuant to a single plan. This single plan classifies claims that are “substantially similar” but must treat all general unsecured creditors equally. Thus, the primary difference between a Chapter 11 filing and a Chapter 13 filing is the type of plan involved and the treatment of creditors.
Making the Decision to File Bankruptcy
Chapter 11 bankruptcy and Chapter 13 bankruptcy are both plans of reorganization but they have very specific differences. When you reach the point where you are considering bankruptcy contact Roddy Lanigan for a meeting to determine what your options are. The final decision is yours but you have to qualify and find out based on your finances, which bankruptcy is optimal.
Chapter 11 Bankruptcy
Chapter 11 is usually for businesses or for individuals who owe much more than the average person. Chapter 11 allows businesses to get on a payment plan and try to get out of debt while still operating as a viable company.
Section §109(d) governs Chapter 11 which gives the same list found in §109(b) for Chapter 7 (you can file in Chapter 11 only if you can file under Chapter 7) except Chapter 11 includes railroads, uninsured banks and banks organized under the Federal Reserve Act.
Chapter 11 is very loose, can be expensive and complex but this flexibility allows the companies to negotiate and can take a lot of time.
In addition, Chapter 11 does not require a trustee and the person running the bankruptcy is known as the “debtor in possession.” This allows any party of interest to file a plan which is then voted on by the creditors to determine which one best serves their interests.
Chapter 13 BankruptcyConversely, Chapter 13 bankruptcy is known as the “working man’s or woman’s plan” and focuses on average consumers who are not looking to liquidate. Only “individuals” with “regular income” whose debts fall within listed limits of 109(e) are eligible for Chapter 13.
Chapter 11 vs. Chapter 13 Bankruptcy
Chapter 13 bankruptcy is very structured and easier to afford than Chapter 11. Unlike Chapter 11, the plan in Chapter 13 is filed by the debtor and is not voted on by the creditors. Furthermore, under Chapter 13 the debtor pays a trustee to distribute payments pursuant to a single plan. This single plan classifies claims that are “substantially similar” but must treat all general unsecured creditors equally. Thus, the primary difference between a Chapter 11 filing and a Chapter 13 filing is the type of plan involved and the treatment of creditors.
