Chapter Eleven bankruptcy is often referred to as a reorganization, because it involves restructuring contractual and debt arrangements.
This is different than the liquidation provided by a Chapter Seven or “straight liquidation” bankruptcy.
What makes Chapter 11 confusing is that Chapter 11 bankruptcies can also involve debt liquidation or the canceling of debts.
While individuals can file Chapter […]

Chapter Seven bankruptcy refers to the type of bankruptcy that is used by individual consumers.
Chapter Seven bankruptcy is often referred to as “the straight liquidation,” because the Chapter Seven process consists of selling the consumer’s non-exempt assets to satisfy the consumer’s debts. Unpaid debts or debts that exceed the sales proceeds of non-exempt assets […]