I was just curious about the differences between the two. I got laid off two years ago, since then lost my house, my truck, accumulated a few grand on credit card debt. Still owe $11k on my repossession from the truck, and just curious on if bankruptcy may be an option I need to look into and want to know the differences.
Thanks…
Or rather chapter 13….
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Chpt. 11 is a business bankruptcy. Chpt 7 is a personal bankruptcy.
credit card debt usually cannot be discharged with a chap 7, might haveto do chapter 13 with teh repayment plan, rules have changed since 2006 – before then you could get rid of repo fees with chap 7 – I did, not sure now – it will cost you a couple grand to file any kind of bankruptcy
It looks like you’re two options are actually chapter 7 vs chapter 13. Chapter 7 is debt forgiveness (and generally property liquidation). Chapter 13 provides a way to pay back your debt while keeping your assets.
Chapter 11 is a business bankruptcy. You are talking personal BK which would mean chapter 7 or 13. Sounds like you would be eligible for 7 which means your debts (other than alimony, child support, back taxes and school loans) get wiped out. Chapter 7 wipes everything out and you get to start anew with a horrible credit history that you need to over come. Chapter 13, means you have sufficient income to pay toward your bills, but that it would take so long, that it’s deemed unfeasable for you to do so. If BK is the route you want to take, then you definitely want to go 7, which is sounds like you would qualify for. Chapter 13, is a horrible thing to be in and should be avoided if at all possible.