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Chapter 7 - 11 - 13 Differences

he decline of the real estate marked is forcing unprecedented numbers of people to face mortgage foreclosure and bankruptcy. If you are one of these people, it is important that you seek informed and caring bankruptcy counsel as you determine how to reorganize your financial life and seek debt relief.

Attorney Sherri B. Simpson's mission is to help you get out of your financial mess. Call us at (954) 524-4141 or contact us through e-mail now for a free consultation.

Sherri Simpson is an experienced bankruptcy law attorney especially skilled at explaining the various bankruptcy laws in a clear and easily understandable manner. This helps you make informed decisions and plans of action to move forward with your life.

When to Use Chapter 7:

Chapter 7 (Ch. 7) is the choice for most individuals or couples filing bankruptcy. Most of the time, people get to keep their home and their car and other secured assets with a Chapter 7. Credit can be restored within one to two years. Chapter 7 corporate bankruptcy is considered a good option when the business is small, is owned by one person, is failing, and has high debts and no ability to pay them back. The business will be closed, and that chapter of your life is over, but you are free to start a new business.

When to Use Chapter 11:

Chapter 11 (Ch. 11) is a reorganization of a business. Owners commit to following bankruptcy laws and a bankruptcy plan. The business must be restructured to solve the problems that caused the financial distress. The monies earned until creditors are paid off go to creditors, not shareholders. This means that creditors are not allowed to take action against the debtors. For more information on Chapter 11, click here to link to our Chapter 11 page.

When to Use Chapter 13:

People generally file Chapter 13 (Ch 13) bankruptcy when Chapter 7 bankruptcy, otherwise known as a personal bankruptcy or consumer bankruptcy, is not an option. This is because your assets are too valuable or because you were unable to eliminate your debts (non-dischargeable debt). Chapter 13 may be a better option if you have defaulted on your mortgage or car loan, or if more of your property can be exempted (not counted) from creditors than could be in Chapter 7. You can read more about Chapter 13 by clicking this link to our Chapter 13 bankruptcy page.

Bankruptcy is Not Right for Everyone

Even if you qualify for Chapter 7 bankruptcy, Chapter 13 might suit your needs better. We help people find the plan that works best for them. If bankruptcy is not the right option for you, we can sometimes negotiate with your creditors to reduce your debt or negotiate settlements with your creditors as an alternative to filing bankruptcy.