Difference between Chapter 7 and Chapter 11 bankruptcy?

[Ooh Marty]

?

 

[Bender Rodriguez]

The main difference between Chapter 7 and Chapter 11 bankruptcy is that under a Chapter 7 bankruptcy filing, the debtor's assets are sold off to pay the lenders (creditors) whereas in Chapter 11, the debtor negotiates with creditors to alter the terms of the loan without having to liquidate (sell off) assets.

 

[Mr. Somebody]

You do one when you aint got it and the other when you need to stall, friend.