The Basic Differences Between Chapter 7 and 11 Bankruptcy

A graduate of New York University School of Law, Nancy L. Kourland practices at Rosen & Associates, PC, in New York. Nancy L. Kourland has largely focused her career on bankruptcy litigation, and she often represents banks, debtors, and distressed companies dealing with Chapter 11 bankruptcy.

In the United States, there are several types of bankruptcy, including Chapter 7 and Chapter 11. These may seem somewhat similar, but there are actually significant differences between them. Both can be filed by individuals, businesses, or married couples, but the average person tends to use Chapter 7, while businesses often use Chapter 11.

Chapter 7 is also called liquidation bankruptcy. The debtor does not have any additional obligation to most debts by the end of the process. However, it will typically not eliminate mortgages or car loans, school loans, child support, or tax debts, though there are some exceptions. During the legal process for this type, a trustee is given the responsibility of securing any assets and selling those that are not exempt.

When it comes to Chapter 11 bankruptcy, a debtor’s assets are not sold, nor is any of the debt wiped out. Sometimes called rehabilitation or reorganization bankruptcy, this type is often more involved than Chapter 7, resulting in debts being restructured so that a company or individual can stay afloat while paying back any loans. While a trustee is also assigned during Chapter 11 processes, the trustee simply helps debtors create a manageable repayment plan instead of selling their assets.


Central Park Conservancy Features Birding Basics Event

Since 2009, Nancy L. Kourland has served as an associate at Rosen & Associates, PC, based out of New York City. In this position, she represents debtors and creditors found in chapter 11 cases. She also partakes in bankruptcy and district court appearances. Active within her community, Nancy L. Kourland regularly donates her time to several nonprofit endeavors, one of which is the Central Park Conservancy (CPC).

Established in 1980 by a group of concerned individuals, the CPC works to preserve, and maintain the integrity of, Central Park. With 40 million annual visitors, the park remains the most frequently visited urban park in the country. As a result, the Conservancy provides crew members to aerate lawns, rake leaves, plant shrubs, maintain the drainage system, and protect the lakes and streams from pollution and algae.

Throughout the year, the CPC hosts events at Central Park for individuals and families to attend. One event, Birding Basics for Families, is scheduled to be held on May 31, 2015, at the Charles A. Dana Discovery Center inside Central Park. Geared toward those ages five and older, this free event features members of the New York City Audubon Society, who will teach attendees how to spot birds that migrate to the area.