Due to similarities between Chapter 11 and Chapter 13 bankruptcy, individuals and businesses that are facing financial problems are often confused as to which one is right for them. Both allow debtors to reorganize their debt into an affordable repayment plan. Our compassionate and skilled bankruptcy law firm can help explain the differences between Chapter 11 and 13 as well as help you determine which one is right for your specific situation.
Helping Individuals and Businesses Throughout Southern California
At the Orantes Law Firm, in Los Angeles, attorney Giovanni Orantes is dedicated to helping individuals and businesses facing financial problems throughout Southern California with bankruptcy filing. With more than a decade of experience in bankruptcy cases, our lawyer offers affordable representation including free initial consultations. During your consultation, we will discuss with you all your options and guide you in selecting the best one for your particular individual or business bankruptcy case.
Let Orantes Law Firm help you with your entire financial situation through bankruptcy restructure. Contact us today.
Chapter 11 Bankruptcy vs. Chapter 13 Bankruptcy
Many individuals or businesses that would like to file for bankruptcy come to Orantes Law Firm unsure of whether Chapter 11 or Chapter 13 is right for them. This is common because both have an underlying similarity of allowing for debt reorganization or restructuring. Under a repayment plan, debtors under both types of bankruptcy are protected from adverse creditors. However, there are many differences and it is important that you are fully educated about them in order to make a well-informed decision.
Here are just some of the major differences (we highly recommend that you consult with our attorney for a full in-depth understanding of the differences and how they may impact your specific case):
- Chapter 11 bankruptcy is for businesses and individuals with significant debt and assets.
- Chapter 13 bankruptcy is only for individuals (therefore if you are an individual owning a business can only file for Chapter 13 as an individual, not as a small business or other business entity).
- Chapter 13 bankruptcy is only for individuals with a regular stream of income and there are debt limitations.
- Chapter 11 bankruptcy allows for all types of business entities including sole proprietorships, partnerships, LLCs, corporations, etc., and there are no debt or income limitations.
- Chapter 13 bankruptcy always includes an appointed bankruptcy trustee; while in Chapter 11 a trustee is appointed only in exceptional cases (such as fraud).
- Creditors can reject a proposed repayment or reorganization plan under Chapter 11; while in Chapter 13 creditors generally must accept it.
Contact Our Glendale Bankruptcy Law Firm
For more information about Chapter 11 or Chapter 13 bankruptcy, call us at (213) 340-0534 or contact us by e-mail to schedule a free initial consultation. Se habla español.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.