Liquidating trustee plan of reorganization russian ukrainian dating agency
Although the goal of the trustee is to pay back the creditors, it is rare for creditors to get back much of their money.
Liquidation (Chapter 7): With a “liquidation” bankruptcy, known as Chapter 7, the trustee sells the assets of the debtor and then uses the money to pay back the creditors as much as possible.
The disadvantage is that the debtor must have the resources to service the repayment plan and must, ultimately, pay back the money.
Chapter 13 bankruptcy, for individuals, requires a lot of work and planning by the debtor, as well as by his or her trustee. On the other hand, Chapter 11 bankruptcy, used by companies, works differently and is, in fact, a lot more complicated.
As such, Chapter 13 is used primarily by people who have a regular income.
The advantage of a Chapter 13 reorganization over a Chapter 7 bankruptcy is that the debtor is able to keep property that would otherwise be liquidated, such as a home, a second car, investments, and family heirlooms.
With an individual, the discharge gives the debtor a fresh start, enabling him to continue his or her life more comfortably.