What are the advantages of filing for Chapter 11 instead of Chapter 7 bankruptcy
For a business, the primary advantage is the ability to continue its operations. For the creditor, it also provides an advantage over Chapter 7, in that unsecured debts will be at least partially paid back, instead of completely discharged, as is done under Chapter 7. Furthermore, under Chapter 11, a business can restructure its secured debts in such a way that payments will actually be lower, spread out over a longer period of time; it allows for termination of unprofitable leases or contracts; it provides for an extended period of time to pay back taxes; and unsecured creditors will not have to be paid back in full, in most cases. Finally, there are no debts that are considered nondischargeable in a Chapter 11 Bankruptcy.
What are the advantages of filing for Chapter 11 instead of Chapter 7 bankruptcy
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