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Chapter 11 and Chapter 13 are two very similar bankruptcy chapters. The major difference between the two chapters is that Chapter 13 is exclusively for individuals while Chapter 11 is open for businesses as well as individuals. Also, there is a ceiling for unsecured and secured debt in Chapter 13 which is absent in Chapter 11. Chapter 11 can also be regarded as an expedited Chapter 13 in many situations as the process of bankruptcy under Chapter 11 is usually very swift. The reason for this higher fees, private bankruptcy trustee, faster processing, etc.
Chapter 11 suitable for?
Chapter 11 rules are quite complex. It isn’t suitable for an individual dealing with fewer debts or even a small business company. There are scenarios where a large company or mid-size firm needs a quick revival plan that can help capture an upcoming opportunity, Chapter 11 is ideal for such firms. It is a cost intensive chapter and hence any individual or a business who applies for Chapter 11 needs to have good resources. When it comes to resources, you can have them on your fingertips by just dialing 888-297-6203. There are world-class attorneys to assist you with all your queries in and around Los Angeles & Dallas, TX. All you must do is dial the number and connect with them.
Chapter 13 suitable for?
Chapter 13 is suitable for individuals who have missed out on chapter 7 due to eligibility and do not have huge secured or unsecured debt. There is a ceiling which is revised every 3 years for secured as well as unsecured debt, to file Chapter 13, the filer must make sure that the debt lies below the ceiling specified. If your bankruptcy case is very straightforward and you probably would not even need an attorney, you can consider Chapter 13 as it will be extremely light on your pocket. The time duration to repay the loan is more open ended in Chapter 11 scenarios considering the amount in question is significantly higher, the tenure does not exceed 5 years in Chapter 13. Hence, for small businesses of individuals just within the debt ceiling, Chapter 13 can prove advantageous.