{"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":"
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 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 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 Not everyone qualifies for a Chapter 7 bankruptcy. Individuals, sole proprietors, or business entities are evaluated differently depending on:<\/p>\n When it comes to filing bankruptcy, it is essential to have an experienced bankruptcy attorney by your side. Choosing between Chapter 7 vs Chapter 11 can be tough. However, if you want to keep all your future income<\/a> and you don’t use it for debt payments, then Chapter 7 might be for you.<\/p>\n Our Portland Chapter 7 bankruptcy attorneys can help you avoid property loss<\/a>, especially if you\u2019re dealing with business bankruptcy. At Michael D. O\u2019Brien & Associates PC, our experienced bankruptcy attorneys can answer your question about bankruptcy filing costs<\/a> and procedures. Call us today at 503-694-4445<\/a> to schedule a case evaluation.<\/p>\n<\/div>\n<\/div>\n<\/div>\n Large businesses with debts that exceed Chapter 11, Subchapter V Small Business Filing<\/a> must proceed with the traditional bankruptcy under Chapter 11<\/a>. Due to the number of creditors and lenders involved the number of votes required before a plan gets approved, Chapter 11 can be expensive and cumbersome. In addition, it is also unavailable to some small businesses.<\/p>\n If your business still has a regular income stream to support a debt reorganization plan, then a Chapter 11 bankruptcy works for you. Additionally, your business may also take out a loan to support the restructuring of your business.<\/p>\n Chosing between Chapter 7 vs Chapter 11 can be a tough decision. To help you choose which type of bankruptcy best fits your situation, connect with our experienced bankruptcy attorneys in Portland, Oregon. Call us at 503-694-4445<\/a> to schedule a free case evaluation.<\/p>\n<\/div>\n<\/div>\n<\/div>\n Some procedural requirements for a Chapter 11 bankruptcy include the approval of your creditors. The US trustee appoints a committee of creditors that consists of the seven largest unsecured creditors, who have the following responsibilities:<\/p>\n Unsecured creditors comprise the committee. This is because unsecured debts are not backed by collateral, and they carry the least amount of protection under a Chapter 11 bankruptcy. That is why they are more likely to be discharged.<\/p>\n In contrast, secured creditors gain protection from bankruptcy because they are entitled to get back the collateral if you fail to pay back your debts.<\/p>\n There are different types of bankruptcy chapters<\/a> available for individuals and businesses owners. If you’re deciding between whether to file bankruptcy under Chapter 7 vs Chapter 11, our bankruptcy attorneys can help you decide. Or if you\u2019re not sure whether bankruptcy is right for you, our bankruptcy attorneys can help you find the best bankruptcy alternative<\/a> for you.<\/p>\n Call our Portland bankruptcy attorneys today at 503-694-4445<\/a> to get legal help finding debt relief in Oregon.<\/p>\n<\/div>\n<\/div>\n<\/div>\n\n
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