Question: Chapter 7 and Chapter 11? Bankrultcy any one can help me in distingusihing chapter 7 and chapter 11 in filing bankruptcy

Answer: Chapter 7 is a liquidation action.  There is no bankruptcy repayment plan per se, but the trustee gathers together all of the debtor's non-exempt assets and sells them and distributes them to the creditors in accordance to the bankruptcy code.\n\nChapter 11 is a reorganization action usually involving partnerships or corporations and very occasionally individuals.  A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time.\n\nA great overview can be found here:\nhttp://www.uscourts.gov/bankruptcycourts/bankruptcybasics.html
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