Chapter 11 bankruptcy is primarily filed to reorganize an operating business. A typical Chapter 11 business debtor is one that is generating money but is in financial distress because of bad management decisions including decisions to incur debt payments above net operating revenues. Chapter 11 is designed to give a business the chance to restructure some of its secured debt and to discount unsecured debt to a level where the business can grow out of financial distress. An individual debtor can also file a Chapter 11 to reorganize their personal financial situation when their debt levels exceed those allowed for a Chapter 13 reorganization.
Chapter 11 bankruptcy, like bankruptcy under other chapters, start with the general filings of a bankruptcy petition, supporting schedules, and statement of financial affairs. These are the same forms required by consumer bankruptcy cases except that some... Continue reading
The central part of a Chapter 11 bankruptcy is the design, approval, and administration of a reorganization plan. A Chapter 11 plan starts by dividing the creditors into various classifications including priority creditors, administrative creditors, secured... Continue reading
Costs and Fees in Chapter 11 Bankruptcy: Chapter 11 bankruptcy is much more expensive than consumer bankruptcies filed under Chapter 7 and 13 as there are more procedures and reports built into the bankruptcy Code and bankruptcy Rules including first day... Continue reading
Chapter 11 For Creditors: As with all other chapters, Chapter 11 cases have a meeting of creditors where a creditor, or its representative, may examine the debtor or debtor’s representative regarding the contents of the bankruptcy petition and schedules.... Continue reading