Chapter 7 is a liquidation - the assets are sold and they pay what they can. There may not be enough to pay unsecured claims, however. Chapter 11 is a reorganization - the court approves a plan, which may include relief from some debts. The goal of the plan is to give the debtor a fresh start and allow the business to continue.
As for what you have to file... maybe a "proof of claim." See Filing a Proof of Claim in a US Bankruptcy for an explanation. In a Chapter 11 it isn't always necessary to file a proof of claim the article does a nice job of explaining that.
Best,
Robert A. Franco
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