We get calls asking us for help and many times people aren't sure what classification they fit into. We figured we would help you sort through the confusion and give you clear, concise definitions of Chapter 7 and Chapter 11 bankruptcy. These are not the legal definitions, but should serve as a guide to help you decide which one is best for your situation.
Chapter 7: This is liquidation. If you file for Chapter 7, your assets will be sold and debt will be forgiven. Obviously, this is more complicated and we will gladly explain the finer details if you are looking for help.
Chapter 11: This is a repayment plan. If you file for Chapter 11, the courts will work out a payment plan to pay down your debts in a longer time period. For Chapter 11, there is no limit to the amount of secured debt you have, however, proof of a steady and reliable income must be shown.
If you think you may need to file for Chapter 7 or Chapter 11, we can help. We are Tacoma’s Premiere Bankruptcy Attorneys, and we are ready to get you back on your feet. Contact us today.