What You Need To Know About Bankruptcy Chapter 7, 11, & 13

Depending on your particular financial situation, needs and goals, we can file a Chapter 7, Chapter 11 or Chapter 13 bankruptcy on your behalf. 


Chapter 7 • Personal Bankruptcy

This type of bankruptcy is a “liquidation” bankruptcy, meaning that assets are sold off to pay existing debt.

Once it has been established that you qualify for chapter 7, it is important to understand what is covered under this filing and what is not.

This solution mainly covers unsecured debt, like credit cards and medical bills.

It might not provide relief for secured debt such as mortgages or automobile loans, student debts, child support and alimony, or IRS taxes.


Chapter 11 • Business Bankruptcy

Filing Chapter 11 bankruptcy allows you to keep certain property and reduce your debt through a court-approved payment plan that can clear a debt even if you only pay a small percentage of it.

While some individuals choose to file for Chapter 11 bankruptcy because of certain financial restrictions, the vast majority of Chapter 11 filers are businesses and corporations.

Other petitioners who choose this form of bankruptcy include:

  • Medical Groups
  • Professional Associations
  • Non-Profit Organizations

In a Chapter 11 bankruptcy, the court carefully monitors all debt payments. If you are thinking about filing for Chapter 11, you should work with a qualified bankruptcy attorney to develop a sound plan of action. The requirements and obligation of Chapter 11 can be daunting if faced alone.


Chapter 13 • Personal Bankruptcy

In the state of New York, Chapter 13 bankruptcy is a proposal to creditors of a 3-5-year repayment plan from the debtor and their future earnings.

Chapter 13 requires that you have a stable income at the time of filing even if it is well below the New York median.

Chapter 13 bankruptcy procures many benefits for the debtor such as:

  • Stopping interest from accruing on tax debt
  • Preventing the foreclosure of a home while allowing them to catch up on missed payments
  • Keeping estimable property
  • Ultimately discharging their debt after the repayment period so long as they stick to the terms

Norma E. Ortiz • 212.213.8511

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