What is the difference between Chapter 7, Chapter 11, and Chapter 13?
Chapter 7 bankruptcy is generally used by individuals who have an income that is below the median income for their state, and have minimal, if any, assets. Under Chapter 7, burdensome debt can be erased usually within 3 ½ months and the debtor can keep his assets if they are below the amount allowed in his/her jurisdiction (called exemptions). If an individual files for Chapter 7 with assets above those allowed, the bankruptcy trustee will liquidate those additional assets to pay off as much of the debt as possible before discharging the balance.
