When you file for Chapter 7 bankruptcy, you experience a great many perks and helpful side effects that you may not have known about. In many cases, medical bills and tax debts can be discharged, meaning that you are legally free to not pay a single cent on those costs.
Chapter 11 generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.
Chapter 13 bankruptcy is a solution that offers aid to individuals who have regular income, but are nevertheless suffering from heavy debt. A Chapter 13 plan gives you a three to five year window of opportunity to catch up on past-due payments. And even then, some remaining, unsecured debt may be discharged at the end of the plan.