{"id":36043,"date":"2021-09-05T11:51:13","date_gmt":"2021-09-05T18:51:13","guid":{"rendered":"https:\/\/pdxlegal.com\/?page_id=36043"},"modified":"2023-01-13T03:24:39","modified_gmt":"2023-01-13T11:24:39","slug":"chapter-7-vs-chapter-11","status":"publish","type":"page","link":"https:\/\/pdxlegal.com\/bankruptcy\/bankruptcy-basics\/chapter-7-vs-chapter-11\/","title":{"rendered":"Chapter 7 vs Chapter 11"},"content":{"rendered":"
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Chapter 7 vs Chapter 11<\/strong><\/div>\n<\/h2>\n
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Dealing with financial loss and debt can be terrifying, especially if you\u2019re unsure which type of bankruptcy best fits your financial situation. Before deciding to file for bankruptcy, it is best to consider other debt alternatives<\/a> available to you, as well as the different types of bankruptcy. Here, you will find out the differences between Chapter 7 vs Chapter 11.<\/p>\n

If you\u2019re an individual or a small business thinking about filing bankruptcy, our trusted Portland bankruptcy attorneys are here to help you understand the basics of bankruptcy<\/a>. At Michael D. O\u2019Brien & Associates PC, we have more than two decades of experience assisting Oregon families in getting a fresh start. Call our law firm today at 503-694-4445<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Chapter 7 Bankruptcy<\/strong><\/div>\n<\/h2>\n
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While both Chapter 7 and Chapter 11 provide debt relief and payment to creditors, only Chapter 7 allows a business to close. This is possible by selling off the properties to pay back their lender.<\/p>\n

Filers who don\u2019t have enough income to enter a debt repayment<\/a> plan qualifies for Chapter 7. Lenders receive payment only if the debtor or the person who owns the money has enough assets to sell. A Chapter 7 bankruptcy trustee<\/a> is the one who is responsible for administering the sale and transfer of funds to the creditors.<\/p>\n

Chapter 7 is one of the fastest types of bankruptcy chapters to finish. However, the length of your Chapter 7 bankruptcy depends on the property you own. For instance, if all your properties and assets are protected through bankruptcy exemptions, then your bankruptcy will be over in four months or less. This is because you have no property to sell or give to creditors, so that you will have a quick bankruptcy process.<\/p>\n

On the other hand, some bankruptcy filers can only protect certain assets, while others aren\u2019t even entitled to exemptions. This type of bankruptcy case stays open longer, usually for about 6 to 12 months, to give the bankruptcy trustee more time to liquidate and sell the properties.<\/p>\n

If you want to know more about Chapter 7 bankruptcy process, call us at today <\/span>503-694-4445.<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Debt Discharge Through Chapter 7 Bankruptcy<\/strong><\/div>\n<\/h3>\n
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The most valuable part of filing Chapter 7 is that it discharges the qualifying debt<\/a> of the filer. However, you should note that not all debts will be discharged. Upon filing the bankruptcy, you will receive the debt discharge within three or four months, even if the trustee is not yet finished selling the assets.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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Who is Qualified for Chapter 7 Bankruptcy<\/strong><\/div>\n<\/h3>\n
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Not everyone qualifies for a Chapter 7 bankruptcy. Individuals, sole proprietors, or business entities are evaluated differently depending on:<\/p>\n