what is the difference between chapter 7 and chapter 11 
chapter 7 also referred to as liquidation bankruptcy is when the court appoints a trustee to oversee the sale of as many of debtor s assets as are needed to pay their creditors unsecured debt such as credit card debt is usually erased however chapter 7 does not forgive any tax obligations alimony or child support or student loans filers are allowed to keep certain exempt property by contrast chapter 11 is a form of bankruptcy that involves a reorganization of a debtor s financial affairs it is most often used by companies though it is available to some individuals as well the main difference is that the entity filing for bankruptcy remains in control of more of their assets as long as they comply with the agreed upon plan 