In around two minutes you will know what are the differences between Chapter 7, Chapter 11, and Chapter 13 Bankruptcy. You will get both professional definition and easy explanation. No intro, no outro, straight to the point.
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The main difference between these types of bankruptcies is what happens with debtors’ assets. As well as whether debtors can continue their operations and what types of debtors use these bankruptcies.
And if you are not sure what Chapter 7, Chapter 11, or Chapter 13 mean individually, feel free to watch my previous videos.
And here is an example.
The main difference is what happens with debtors’ assets. Under Chapter 7 the majority of assets are sold in order to cover the debt.
But Chapter 11 and Chapter 13 allows to consolidate your debts, restructure the finances, and come up with the repayment plan.
The second difference is whether debtors can continue their business operations. Chapter 7 means starting fresh in most cases. Which means that usually, there is nothing much left to continue doing business.
While Chapter 11 and Chapter 13 allows to keep assets and continue making money. And means that it allows companies to stay afloat even after declaring bankruptcy.
The third difference is what types of debtors use these bankruptcies.
Chapter 7 can be used by both individuals and businesses.
Chapter 11 is mainly used by companies, since it is the most complicated and expensive filing. And Chapter 13 is mostly used by individuals and married couples.
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*None of this is meant to be construed as investment advice, it's for entertainment purposes only. Links above include affiliate commission or referrals. I'm part of an affiliate network and I receive compensation from partnering websites. The video is accurate as of the posting date but may not be accurate in the future.
