Chapter 11 and 13 bankruptcy involves the creation of a proposed arrangement that will allow a party to reorganize and consolidate its debt into a more manageable plan to be paid on a monthly basis. By filing for Chapter 11 and 13 bankruptcy, you are given an opportunity to restructure your finances while keeping your business, home, vehicles and the other assets you find important.
In addition, immediately after filing for Chapter 7, 11 and 13 bankruptcy, an automatic stay will go into effect that will:
- Stop creditor harassment
- Stop foreclosure proceedings
- Stop repossession
- Stop liens
- Stop lawsuits
- Stop other collection activities