What isn’t true that I was replying to is that chapter 11 bankruptcy is only for corporations and gazillionaires. Regular people can use 11 to their benefit often - especially if they aren’t so far in the hole they can’t see daylight.
Secured debt can be discharged without forfeiting the collateral by paying it off or coming to a new arrangement in a chapter 11 proceeding.
While there is a lot of discretion judges get in the vast majority of 7 or 13 proceedings, unsecured credit holders are entirely wiped out, or very nearly. Each individual case is different of course.
This is just not true.
But it’s on the internet?
Fair point.
deleted by creator
What isn’t true that I was replying to is that chapter 11 bankruptcy is only for corporations and gazillionaires. Regular people can use 11 to their benefit often - especially if they aren’t so far in the hole they can’t see daylight.
Secured debt can be discharged without forfeiting the collateral by paying it off or coming to a new arrangement in a chapter 11 proceeding.
While there is a lot of discretion judges get in the vast majority of 7 or 13 proceedings, unsecured credit holders are entirely wiped out, or very nearly. Each individual case is different of course.