There are also certain debt limits for debtors filing under chapter 13, which are explained under the description of chapter 11 cases below.
Chapter 11: Chapter 11 is the chapter used by large businesses to reorganize their debts and continue operating.
In most cases, the plan payment will be less than the combined payments of the debts prior to filing, and the debtor can retain all of his assets provided he makes the payments as required and maintains insurance on items, such as his home and car which are security for loans being paid through or outside of the plan.
To qualify as a debtor under chapter 13 of the Bankruptcy Code, the Debtor must be an individual or a husband and wife, filing jointly.
Another type of debt that is not discharged is debt that is reaffirmed by the person filing the bankruptcy.
Reaffirm and reaffirmation agreement are terms that are described in the Bankruptcy Glossary.
However, bankruptcy does not discharge or wipe out most taxes, most school loans, child support or alimony (called domestic support obligations in the bankruptcy code) and some other debts.If a debtor wants to keep an item (Ex: house or car) which is security for a loan, he/she must continue these payments.If the debtor wants to discharge that car loan, then he/she must surrender the car to the creditor that holds the lien.In other words, if your plan only provides for payment of 10% of the unsecured debt, then the remaining 90% plus any accrued interest will be discharged or wiped out upon completion of your plan.If your plan provides for payment of no money to unsecured creditors, then the entire unsecured debt is discharged upon completion of the plan.