Chapter 7 is a personal bankruptcy procedure where you eliminate most if not all your outstanding dischargeable debt. Chapter 11 is a corporate restructuring to allow you to pay back creditors over time. In the world of bankruptcy, these two distinctions are as different as apples and oranges, but typically any lawyer who is classified as a Chapter 7 bankruptcy attorney can also help you with a Chapter 11 filing. Hoverson Law Offices can handle either for you and we also do Chapter 13 filings.There are obviously significant differences between personal bankruptcy filings and corporate bankruptcy. You would think in a corporate filing that there is more work involved, but typically the records and paperwork necessary for corporate filings are more readily at hand. Businesses are more organized than the average individual, most of the time. There is of course no set rule when it comes to this, because there are always disorganized businesses and well-organized individuals that break the mold.Assuming that all paperwork is in order, an individual bankruptcy filing requires an evaluation by a Minnesota bankruptcy attorney to calculate the amount of dischargeable debt. This is a complex process, and one that will determine whether a person is eligible to file Chapter 7 or Chapter 13. Chapter 7 allows you to eliminate almost all debt, giving you a fresh start. Chapter 13 is a restructuring of debt. You’ll still have to pay, but you can stretch it out over time and often eliminate the exorbitant interest and late fees you might otherwise get stuck with. For corporate bankruptcy, you’ll be filing Chapter 11, which is similar to Chapter 13 in that it’s a restructuring plan, but it’s designed for corporate debt. Chapter 11 protects you from your creditors, eliminating the possibility of lawsuits and seizures while you attempt to get your company back on the right track. Unfortunately, in the wake of the recent devastating recession, many businesses are seeking this type of protection and the courts are getting much stricter about who they award it to. Make sure you’re represented properly and that all your paperwork is in order if you want the proceedings to go smoothly and the judgment to be in your favor.
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