Bankcruptcy: Chapter 11
Chapter 11 This is a reorganisation of a debtors assets and payments. This enables a person to remain in business such as those in commercial enterprises, retain their assets and have their finances reorganised by the courts.
Chapter 13 This is where a person that owes creditors or lenders have to make a plan to repay them over a period of time of no longer than 5 years. The creditors, courts and the trustee will review the plan and either approve it or request the period is shortened. This is available to those who have unsecured loans such as credit card debts of up to $100,000 or mortgage loans up to $350,000. The amount which has to be repaid must equal that which would normally be repaid under a Chapter 7 filing and consider what the persons income was.
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