Lehman Brothers Financial SA (LEHNQ)

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THIS IS FOR EVERYONE WITH THE EXCEPTION OF JOE

JOE’S comment will not be entertained. :D

Chapter 11 vs. Chapter 7 Bankruptcy
Diffen › Finance › Personal Finance
Depending on the type, or "chapter," of bankruptcy, debts are treated differently. In Chapter 11 bankruptcy, debts are restructured in a way that debt repayment becomes more achievable. In Chapter 7 bankruptcy, which is the most common form of bankruptcy, many debts are forgiven, and a variety of personal assets are sold — liquidated — to repay as many remaining debts as possible. In general, Chapter 11 bankruptcy is utilized by corporations and other business owners, while Chapter 7 bankruptcy is favored by individuals.

There are 4 types of bankruptcy filings in the Federal Bankruptcy Code (Title 11 of the United States Code):

Chapter 7 - Liquidation
Chapter 11 - Reorganization (or Rehabilitation bankruptcy)
Chapter 12 - Adjustment of Debts of a Family Farmer with Regular Annual Income
Chapter 13 - Adjustment of Debts of an Individual with Regular Income