If circumstances prevent you from complying with your plan, you can request a hardship discharge. If granted, you'll get a discharge without having to complete your plan not all types of debts will be wiped out, however.
You must meet specific criteria to qualify. To learn more, see Chapter 13 Hardship Discharge. A hardship discharge is not available in Chapter 11 bankruptcy. If you cannot complete the terms of your reorganization plan, your Chapter 11 case will either be dismissed or converted to a Chapter 7 bankruptcy.
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Lawyer Directory. Speak With a Bankruptcy Attorney Today at Chapter 11 Bankruptcy vs Chapter 13 Bankruptcy. Chapter 13 bankruptcy usually makes more sense for individuals and small businesses.
Find out if you should file chapter 13 bankruptcy to get rid of your debt. What Is Chapter 11 Bankruptcy? What Is Chapter 13 Bankruptcy? Some of the advantages of a Chapter 13 bankruptcy over Chapter 11 include: Codebtor Stay in Chapter 13, But Not in Chapter 11 The protection of the automatic stay in a Chapter 13 bankruptcy extends to codebtors.
Hardship Discharge Available in Chapter 13 If circumstances prevent you from complying with your plan, you can request a hardship discharge. This is because: the filing fee for Chapter 13 is less costly, and the Chapter 13 process requires less work. Talk to a Bankruptcy Lawyer Need professional help? Start here. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations.
Our opinions are our own. Here is a list of our partners and here's how we make money. Bankruptcy is one of the fastest and most effective ways to find debt relief. Most consumers who follow this path will file for Chapter 7 bankruptcy or Chapter 13 bankruptcy. Which is best depends on the individual's assets and financial goals. Regardless of which you might choose, bankruptcy may be the best option if:. You see no way to pay off your debt within five years. The main differences of Chapter 7 vs.
Chapter 13 bankruptcy are the eligibility requirements, how debts are resolved and the time frame. Check out this table to get an understanding at a glance:. Chapter 7. Chapter Form of bankruptcy: Liquidation. Form of bankruptcy: Reorganization. You must pass the means test, which looks at your income, expenses and family size.
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Personal Bankruptcy. Corporate Bankruptcy. Bankruptcy: Your Legal Rights. Bankrupty Terms C-I. Bankrupty Terms J-Z. Table of Contents Expand. Chapter 11 vs. Chapter Why File for Chapter 11? Reasons to File for Chapter Changes Due to the Pandemic. Chapter 13 Bankruptcy: An Overview There are some notable differences between Chapter 11 and Chapter 13 bankruptcy, including eligibility, cost, and the amount of time required to complete the process.
Key Takeaways Chapter 11 and Chapter 13 bankruptcies allow for the discharging of debts but have different costs, eligibility, and time to completion. Chapter 11 can be done by almost any individual or business, with no specific debt-level limits and no required income. Chapter 13 is reserved for individuals with stable incomes, while also having specific debt limits. Chapter 13 includes a trustee appointment that will handle distributing all income to creditors over a three- to five-year time period.
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