bankruptcy chapters

Bankruptcy chapters are legal categories that define different types of debt relief options for individuals and businesses. Chapter 7 involves liquidating assets to pay off debts, offering a fresh start but potentially losing property. Chapter 13 involves reorganizing debts into a manageable repayment plan over three to five years, allowing borrowers to keep their assets. Chapter 11 is mainly for businesses, enabling them to restructure their debts while continuing operations. Each chapter serves different financial situations, aiming to provide pathways for debt resolution while balancing creditor rights and debtor relief.