What Is The Difference Between Chapter 7 & Chapter 11 Bankruptcy

30 June 2022

The businesses that fell into financial trouble consider Bankruptcy as their only legal way of solution. This particular legal process is often initiated by the debtors and is imposed through court orders.

If you find that bankruptcy is your only way to seek relief from the creditor, then you can go for it. But you also need to keep in mind that Bankruptcy has various chapters, for instance, chapter 7, chapter 11, and chapter13 as well.

If you are willing to file bankruptcy, you must consider the difference between these chapters in it.

What Is Chapter 7 Bankruptcy?

The liquidation of assets takes place to repay the debt. In that case, a company or an individual can file for this particular chapter, and that will be the shutdown of their whole operations and management processes.

You will be able to understand everything from Chapter 7 Bankruptcy about the chapter 7 bankruptcy before you file for it.

The debtors need to liquidate their personal assets, according to this chapter. To fill the debt, the debtor tries to focus on secured loans such as home equity loans, car loans, mortgage loans, et cetera.

After that, if there is still money left for the debtor, they will pay through unsecured loans like credit cards or personal loans. The main benefit of chapter 7 is that they will not get any further repayment plan, and thus they can start anew.

What Is Chapter 11 Bankruptcy?

It is a new process of returning the money to the creditor. The debtors file this chapter to save their assets.

But anyone cannot go for this bankruptcy unless they have sufficient proof to run their business regularly. Chapter 7 bankruptcy in GA works in a different way from chapter 11 bankruptcy.

If you have the ability to run your own business but are facing trouble repaying your debt, then only you will be able to file chapter 11.

In this case, you will need to submit a restructured payment method that you want to initiate for your repayment. After that, the court will analyze and restructure it again through its trustee to give you the best negotiation possible.

Key Differences

Still, finding the key differences?

Through this discussion, you will be able to understand the differences between these two chapters. And understanding these differences will let you go through the legal process carefully and properly.

1. Type

If you consider understanding the chapter 7 bankruptcy in GA, you will be able to assess that this chapter deals with the liquidation of assets in terms of paying the debt.

On the other hand, chapter 11 deals with the negotiation process of your loans. It helps you to restructure your repayment method and bares you some extra time in a possible way.

2. Advantages

With chapter 7, you cannot start your own repayment plan without having any limitations of debt. If you give a closer look into chapter 7 bankruptcy in GA, you get the idea that you will not have the chance to start from the beginning.

On the other hand, with chapter 11, your company will get the chance to continue processing its operations to stand again.

3. Closure

Are you willing to close all your operations?

With chapter 7, you will be able to do that to pay your debts. Closing all your operations will help you to liquidate your money by selling your assets.

Do you want to continue your current operations? You can do that if you file for chapter 11 only.

4. Processing Time

In chapter 7, the debt payment through liquidation takes up to 6 months.

On the other hand, chapter 11 processing takes a much longer time. Chapter 11 does not have any particular time period as the restructuring process takes time to be fixed, and there are also chances of payment extension.

To Wrap Up

If you want to file for bankruptcy, you must know the process and details of it. If you do not consider this article on your reading list, you will not be able to file a suitable chapter for you.

Always try to be advanced while considering law cases. It is your responsibility to take down the debt from your head and thus be sure to advance your knowledge of bankruptcy and its different chapters.

Read Also:

Mashum Mollah

View all posts

Achieving Financial Freedom As A Millennial Is Easier Than You Think

People often say that financial freedom is hard to achieve when you are a millennial. Though it can be true for the most part, it all lies in your mindset and how you control yourself. Achieving financial freedom is as easy as turning the tables to something positive. And if you’re a struggling millennial who is stuck in this dilemma, this is the change you have been looking for. Are you ready to take on the challenge to achieve that financial freedom breakthrough? Seeing you here in this article is already a good sign. Read on! Your Goals Matter: Setting goals is the first step in achieving financial freedom and everything will then follow after. By having goals, you will be able to control and discipline yourself when it comes to handling finances. And this not only affects your finances but also how you deal with life overall as well. This includes your relationship with the people around you, traits, and behavior. Settings goals mean doing yourself a favor in stepping up to greater heights financially and mentally. Overspending Is Your Enemy: Sometimes, we are all so glued to our wallet that leads to overspending. And the moment we are bombarded with bills, we have nothing left in our hands. That’s why you should always be careful when spending on things. This is where self-control comes into play. We know it can be tempting to get that latest gadget that’s trending on the internet. But is it a good investment worth paying for? Or you just want to buy it so you can keep up with the trend? So take time to reflect before adding it to your cart. Quality is King: This section is a continuation of the one discussed above. Because when you opt for quality products, you will be assured that they will last for years. Thus, saving you cash from buying another one. That’s why it’s important to buy legit and authentic items when you go shopping. And this can apply to anything, be it for work, personal use, or for your passion. If you are more into filming, it’s essential to see your work in all its glory. And for that, choose a LED screen manufacturer that you can trust. Love photography? Buy your camera from a trusted brand that is already known by many. Whatever that might be, always choose quality over anything. Sometimes, companies love to sway customers with flowery words through the power of marketing. But before you get carried away by these promises, check the quality first and your wallet will thank you later. Stick To Your Budget: If you are a working millennial, it’s best to stick to your budget based on your salary. There’s no use eating in fancy restaurants or buying expensive things if your payroll won’t even last for a week. That’s why the importance of your budget should never be overlooked. Don’t worry if your salary is not so big for now. Because you will eventually have a bulky wallet in no time as long as you work hard for it. One effective way to control your budget is by making a list of things or stuff you are going to spend with your money. And of course, don’t forget to save some cash for your emergency fund too. Life troubles are just around the corner. That’s why it’s better to have extra money that we can grab in times of need. Invest As Early As Now: Start investing in things that will make your money grow while you are still young. Should you want to try businesses such as stock trading, or marketing, then go for it! Just make sure that the one you will be joining is not a scam. Having trouble? There are myriads of guides and mentoring courses that you can find online that talk about investing. The best way to grow your money at such an early age is doable by the power of an investment. Take the Leap of Faith: Sometimes, the only enemy that is stopping us is ourselves. Maybe there are a lot of financial doors for opportunities in front of you. But instead, you choose to close them because you think that you can’t make it. But have you ever thought that opportunity might be the one you’ve been waiting for? We never know, maybe that is finally the financial breakthrough that can give you financial freedom. So don’t be afraid to take the leap of faith even if how treacherous the path can be. Become a person that is teachable to such possibilities when it comes to finances. Opportunities come and go, so it’s better to grab some of them before it’s too late. You will look back one day and thank yourself for finally taking the next step. Conclusion: Some say financial freedom is not a walk in the park if you are a millennial. But by following these pointers above, you will be surprised how far your wallet will take you someday. It’s going to be one hell of a climb, but the journey will be worth every effort you have exerted for it. So don’t give up just because things didn’t go your way financially. But instead, be a person who is willing to change and explore new heights to achieve financial freedom. So what are you waiting for? There is no better time to hunt for financial greatness than today. Read Also: 5 Proven Ways to Reduce Your Home Insurance Rates Features To Ensure Success Of Your Money Saving Service Does Equipment Rental Really Result in Savings? The Vital Components of Thriving in the Gig Economy

How To Safely Apply For Payday Loans Online From Direct Lenders?

In a fast-paced world where financial emergencies can arise unexpectedly, many individuals consider payday loans. The advent of the internet has simplified the process, allowing potential borrowers to apply for payday loans online. Here, kicks the need for direct lenders. However, navigating this terrain requires caution to ensure both the safety and the appropriateness of the financial solution. This article aims to guide you through the process of applying for direct lender online loans in a safe and informed manner. Understanding Payday Loans Before diving into the application process, it's crucial to understand what payday loans are. These loans are typically characterized by their brief duration and relatively high-interest rates, with the repayment usually scheduled for the borrower's upcoming payday. They frequently serve as a financial solution for unforeseen expenses or a means to manage finances until the next salary is received. Who Are Direct Lenders? In the financial ecology, a direct lender is any bank or financial institution that finances and approves mortgage-based loans. With their inclusion, there is no need for a middleman, which eventually speeds up the process. Furthermore, a direct lender is compensated through multiple charges and fees. They are usually different from a mortgage broker because the latter is a financial expert who brings a lender and a borrower together. Like lenders, they do not utilize their personal funds for advancing mortgage loans. Choosing Direct Lenders When it comes to online payday loans, there are two main types of lenders: direct lenders and third-party lenders. Direct lenders manage the loan process from start to finish, while third-party lenders act as intermediaries. Opting for direct lender online loans offers more transparency and fewer additional fees. Here are some steps to do so: 1. Researching The Lender The first step in the safe application for a payday loan is thorough research. It's important to verify that the lender is legitimate and reputable. You can do this by checking for online reviews, looking for any filed complaints against the lender, and ensuring they have a valid license to operate in the borrower's state. 2. Understanding The Terms Before applying, it's vital to understand the terms of the loan fully. This includes the interest rate, fees, repayment terms, and any fines for late or missed payments. Reading the fine print can prevent unpleasant surprises later on. 3. Direct Lenders' Application Process The process for online payday loans is typically straightforward. Borrowers must be competent enough to provide personal and financial information. For example, proof of income, employment details, and bank account information. Ensuring that the lender's website is secure and uses encryption to protect personal information is key. 4. Assessing Affordability Before taking out a payday loan, evaluating whether it is affordable is crucial. This means considering if the borrower can repay the loan on time without causing financial strain. It's advisable to look at the budget and weigh if the loan is truly necessary. Drawbacks Of Hiring Direct Lenders It is true that direct lending decreases the dependency on a financial entity or bank. But, it comes with its own set of risks and challenges. Given below are a few disadvantages of working with a direct lender. Before you hire someone, make sure to go through these properly, assess the risks, and start working towards them efficiently: A. The Risks Involved While payday loans can be a convenient short-term solution, they come with risks. The increasing charges, as well as interest rates, can create a cycle of debt if one does not tackle them with caution. Understanding these risks is fundamental to making an informed decision. B. Risk Of Application Denial Another con of working with a direct lender is your application’s approval. They might have their own loan terms and understanding of the same. Hence, if there is any error in your application that doesn’t make sense to them, chances are high that your loan will get denied. As a result, you will come back to the exact same place from where you started- the loan application! C. Privacy and Security When applying for payday loans online, protecting personal information is paramount. This means ensuring the lender's website is secure and not providing personal information on public or unsecured networks. Conclusion Applying for payday loans online from direct lenders can be a straightforward process, but it requires careful consideration and research. Understanding the terms, assessing affordability, and ensuring the security of personal information are all crucial steps. While payday loans can provide immediate financial relief, they are not a long-term financial solution and should be used judiciously. Being informed and cautious can help navigate the process safely and responsibly. Read Also: Finding the Best Mortgage Lenders to Buy Your Dream House Why Are Lenders Moving Towards Automated Mortgage Processing? Private Money Lenders – Here Is Why This Is A Great Alternative For Your New Business

How to Buy, Sell and Trade EOS Coin

In layman’s term, EOS happens to be one popular contrarian play, designed for crypto investors. It is perfect for those who are betting right on the long-term value. Some traders might compare the functions of EOS with that of Ethereum and even note the discrepancies in market cap. When comparing these two options, you will realize that EOS is here to offer better growth opportunities. Ways to buy EOS: There are four simple steps, which will help you to beli eos with ease. Make sure to go through the steps in detail and understand their points before making the final call on it. At first, you need to find information on an EOS wallet, which you are planning to use. You need a proper place where you are likely to put them. So, make sure to find the best one in turn and there are so many options available lately. Once you have come across the best EOS wallet, it is time to start working with the exchange. You need to find one that works with EOS that you can easily purchase it. Now, the time has come when you need to put money into your current account. Funding your EOS account is very important and you need to be very careful regarding the moves to take. For the last step, you have to make your necessary purchase. Read more to find out about the exchange and even all the possible wallet recommendations. You need to find the pros and cons of purchasing EOS before making a move. Best ways to sell EOS: If you are on the other side of the coin and planning to sell EOS, then there are some simple steps for you to follow as well. At first, you need to sign up at the given altcoin exchange and start funding your account with EOS. You can even try to load EOS into Bitcoin ATM, if the need arises, which help you to cash out faster. Now, you can sell EOS for Ethereum or Bitcoin, whichever platform you prefer the most. These two are the most widely accepted platforms for cryptocurrencies. It becomes a lot easier for you to access these sources for higher liquidity and volume. For the next step, you have to transfer the Ethereum or Bitcoin to the main wallet after you have signed up and verified your usable account. Just click on the “funding” option available online and then follow instructions for Ethereum or Bitcoin, whichever one you are planning to fund with EOS. Now, you can easily sell your Bitcoin for fiat currency, like Canadian dollar or Euro using some quick trading options. It just takes few clicks for you to sell the crypt currency with ease. When you are done transacting, you can withdraw Euro or the Canadian dollar amount to your back account directly through the EOS wallet you have chosen. The “Withdraw” option is available online as well. Just click on it and then follow the given instructions to find the best result. Ways you can trade EOS: In this current market, there are practically two options while trading in the cryptocurrency market. You can either purchase actual cryptocurrency on exchange like purchasing EOS on exchange like Binance to own EOS on your own. Or, you can try to trade a contract for difference or CFD on any particular cyptocurrency and start working on the price difference. CFD is one proven financial instruction, which works more like a contract between broker and investor. If you want, you can hold the long term position or the short term one. It is mostly considered as short-term investment as CFDs are widely used within a shorter time zone. So, for trading EOS CFDs, you need to speculate on the USD or EOS pairing. Get the experts for help: You need professionals to help you explore the world of EOS and help you to trade, buy and sell the EOS coin according to your will. Make sure to learn about this platform and then shift your gaze towards the perfect EOS wallet to choose from. The result will always work out for you. Read Also: Bitcoin Profit Review 2019 How To Make Money From Bitcoins In 2020 The Basic Principles of Blockchain Fund Administration and E-Wallet The Profit Revolution: The Best Bitcoin Trading And Investing Platform

What Is The Difference Between Chapter 7 & Chapter 11 Bankruptcy

What Is Chapter 7 Bankruptcy?

What Is Chapter 11 Bankruptcy?