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What is the difference between Chapter 7, Chapter 11, and Chapter 13?

There are three types of bankruptcy cases --- Chapters 7, 11, and 13.

Chapter 7
The goal for individuals who file Chapter 7 is to free themselves of debt through a bankruptcy discharge.

Chapter 11
Corporations, partnerships, and sole proprietors wishing to remain in business and reorganize their financial affairs may file Chapter 11.

Chapter 13
Chapter 13 is for individuals with regular income who want to reorganize their financial affairs. The debtor proposes a repayment plan, say to catch up on the arrears on their home mortgage. Only individuals and sole proprietors are eligible for Chapter 13, which is simpler and much less expensive than a Chapter 11.

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