Chapter 13 vs. Chapter 11 Bankruptcy
- February 20, 2013
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The differences between filing a Chapter 13 or Chapter 11 bankruptcy are very important to understand as the law has specific requirements for each. Although the underlying purpose of both Chapters is to reorganize and eliminate debts, one is usually better suited than the other for each case. For instance, it is important to understand before filing that only individuals and sole proprietorships can file Chapter 13 bankruptcy whereas types of business excluded from Chapter 13, such as corporations and partnerships, and individuals can file Chapter 11. In addition, it is important to note that individuals who file for Chapter 13 must not have more than $360,475 in unsecured debt and $1,081,400 in unsecured debt, whereas Chapter 11 has none of these requirements. Because there is no cap on the amount of debt the debtor has in a Chapter 11 filing, it is usually a more complicated process as debtors filing under Chapter 11 have more debts and creditors that need to be considered by the Bankruptcy Court. If you are considering filing for bankruptcy you will be addressing many issues what type of bankruptcy you should file and should consult with an experienced bankruptcy attorney immediately in order to protect your rights. For more information regarding the type of bankruptcy you should file or other bankruptcy, foreclosure or consumer debt law matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for information purposes only and in no way is intended to replace the advice of an attorney regarding your specific matter. We are a Debt Relief Agency. We help people file for bankruptcy relief.