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Filing for Chapter 7:Chapter 7 does not require filing arepayment plan such as with filing forChapter 13.
Rather, the trustee collects and sells thedebtor's assets and uses the profit made onthe sell of the assets in order to paycreditors.
When filing for Chapter 7, debtors shouldrealize that the consequence may be thedebtor losing property.
Chapter 11 bankruptcy is considered the "reorganization" bankruptcy.
If an individual has failed to appear before the court and previously had a bankruptcy petition dismissed, he or she is not permitted to file for Chapter 11 bankruptcy.
The beginning of filing for Chapter 11 involves the individual submitting a petition with the court in the area of the individual's residence.
Filing for Chapter 11:
Filing for Chapter 13:Chapter 13 bankruptcy allows debtors to hold onto property and to pay off their debts over time rather than having to pay them all off at once.
This type of bankruptcy filing is also known as a wage earner's plan which allows individuals to create a payment plan to begin paying off debts.
Filing for Chapter 13 over Chapter 7, will often assist individuals with holding onto personal properties such as their homes.
