CHAPTER (13) is generally referred to as a consolidation case. In a Chapter 13 one makes a monthly payment generally based on what they can afford for three (3) to five (5) years. Almost any type of debt can be dealt with by a Chapter 13, including taxes, student loans, and support related debts. Also, home loans and automobile payments that are behind can be paid in the case, stopping foreclosures and repossessions.

Chapter 11 is reorganization, as opposed to liquidation. Debtors may "emerge" from a Chapter 11 bankruptcy within a few months or within several years, depending on the size and complexity of the bankruptcy. The Bankruptcy Code accomplishes this objective through the use of a bankruptcy plan. With some exceptions, the plan may be proposed by any party in interest. Interested creditors then vote for a plan. Upon its confirmation, the plan becomes binding and identifies the treatment of debts and operations of the business for the duration of the plan.