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Chapter 11 and Chapter 13 Bankruptcies-Central District of California


Chapter 11 and Chapter 13bankruptcy have similarities that can cause confusion for anyone not too familiar with bankruptcy laws and the bankruptcy process.  However, both chapters have differences that must be considered when deciding which chapter to file under.

First is the filing fee.  In the Central District, filing a Chapter 11 costs $1039, whereas filing a Chapter 13 costs $274.  Also, each Chapter was designed with a different purpose in mind.

Chapter 13 is designed for individuals with regular income who would like to pay all or part of their debts in installments over a period of time.   Chapter 13 is available for almost all individuals as well as sole proprietorships.  However, there are certain debt and income limits for eligibility for a Chapter 13.

Chapter 11 is designed for the reorganization of a business to keep the business viable and pay creditors over an extended period of time.  Chapter 11 is also available to individuals/consumer debtors with very large amounts of debt and income.

In both Chapter 11 and Chapter 13 bankruptcies, the debtor creates a plan to reorganize and consolidate all debt.  In a Chapter 13 bankruptcy, the creditors must accept this plan provided that it meets certain legal standards.   In a Chapter 11 Bankruptcy, the creditors cast votes to determine whether they will accept or reject the plan.

Both Chapter 11 and Chapter 13 provisions are quite complicated, and any decision by an individual to file a bankruptcy petition should be reviewed with an attorney.

Visit or call (949) 735-8499 for more bankruptcy information.

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