Risk Management Company has a loan from Capital Bank. Capital Bank has a perfected security interest in all of Risk Managements's assets. Risk Management defaulted on the loan $($didn$\text{'}$t pay it$).$ Risk Management Company is insolvent and filed for a Chapter $7$ Bankruptcy. How will Capital Bank's position as a secured creditor be treated? What will happen to unsecured creditors?

What is the difference between a Chapter $7$ Bankruptcy and a Chapter $11$ Bankruptcy? Explain in detail.