Chapter 7 bankruptcy is different from Chapter 13 bankruptcy. The difference is your income level. In other words, if you don't make enough money or income to qualify for Chapter 13, you will have to file for Chapter 7. Chapter 7 is normally simpler and takes much less time than a Chapter 13 bankruptcy. Hopefully you will be able to qualify for Chapter 7 but speaking to a legal representative who is knowledgeable about this type of transaction will give you an idea of what you are up against.
The different personal bankruptcies and how they affect you
What is chapter 11 bankruptcy?
Bankruptcy is often seen as a way to start over, with a clean slate. There are different ways of getting there. While Chapter 7 is seen as the "wipe clean and start over" method that involves the closure of a debtor's business and a liquidation sale to repay creditors, Chapter 11 is more of a way to repay and restructure not only your debt but your method of repayment. Often, the restructuring also involves obtaining new funding and realigning assets.
