Difference Between Chapter 11 and Chapter 13 Bankruptcy

Chapter 13 and Chapter 11 bankruptcies in San Antonio have certain key similarities that can cause mislead anyone who doesn’t specialize in bankruptcy.

Who Can File for Chapter 11 and Chapter 13 Bankruptcy?

Chapter 11 bankruptcy is available for businesses and individuals who possess a very large amount of debts and income. Chapter 13 bankruptcy is available for almost all consumers as well as sole proprietorships; however there are debt/income limits for eligibility. These limits often change every year.

Chapter 11 Bankruptcy in San Antonio-Creditors Vote

In both Chapter 11 and Chapter 13 bankruptcy, the debtor and the debtor’s bankruptcy lawyer or law firm develop a plan to reorganize and consolidate the debt. In Chapter 13 bankruptcy in San Antonio, the creditors accept the plan assuming it meets certain legal standards. In Chapter 11 Bankruptcy in San Antonio, the creditors vote to determine whether they will accept or reject the plan.

Under Chapter 11 bankruptcy, if the creditors reject the plan, the debtor can come up with a new plan. The judge can force the creditors to accept the debtor’s plan or the negotiations may simply fail. If negotiations are unsuccessful, the business will either have to file for business Chapter 7 bankruptcy, or, the case may be dismissed.

To learn more about bankruptcy in the San Antonio area, you can schedule an appointment for a free initial consultation with one of the members of our legal team. Just call (210) 807-4252 or contact our offices online.