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

Chapter 7 – Chapter 7 Bankruptcy is a liquidation proceeding. Chapter 7 is the most common form of bankruptcy, and is usually used to discharge, or ‘wipe out’, your unsecured debt such as credit cards; medical bills; most personal loans; judgments; deficiencies on repossessed property, etc. These debts are then usually wiped out completely, though certain specific categories of debts are not able to be wiped out. Chapter 13 – Chapter 13 Bankruptcy is a reorganization or debt consolidation proceeding. Chapter 13 is usually used if you are seeking to protect property such as a home, boat or automobile from collections and repossession. Chapter 13 requires you to have some regular source of income, and affords you an opportunity to repay any delinquent debt amounts over a 3 to 5 year period, while you are entitled to keep possession of the property you are seeking to protect. Some of these debts may not even have to be paid back in full to be completely wiped out. Chapter 11 – Chapter 11 allows corporations, partnerships, and certain individuals who do not qualify under Chapter 13, to reorganize without having to liquidate all assets. As in a Chapter 13, the Debtor (called the “debtor-in-possession” because a trustee is not normally assigned) is required to present a repayment plan. If the plan is accepted by the creditors and subsequently approved (“confirmed”) by the Court, this allows the Debtor to reorganize his/her/or its personal, financial, or business affairs.