Chapter 7 is insolvency forced by the creditors. The company shuts its doors, and no longer exists. The stockholders get nothing. Everyone it is owed (creditors) divides up the money and sells off all the equipment. Everyone goes home extremely grumpy.

Chapter 11 is reorganization. The stockholders usually get nothing. Union contracts may get changed. Pilot pay rates, as an example, may be reduced. Creditors get new payment schedules renegotiated. As an example, they may get interest payments only the next 5 years before principal repayments starts. It is possible they sell off a portion of the business. But, they re-emerge as a company continuing operations. They live to see another day. Employees (or at least some of the employees) are still employed. People go home somewhat grumpy.