Chapter 11 is typically used for business bankruptcies and restructuring. It is not commonly used by individual consumers since it is far more complex and expensive to pursue. It allows businesses to reorganize themselves, giving them an opportunity to restructure debt and get out from under certain burdensome leases and contracts. Typically a business is allowed to continue to operate while it is in Chapter 11, although it does so under the supervision of the Bankruptcy Court and its appointees.
A debtor who is filing for Chapter 11 must submit a list of assets and liabilities and a detailed list of his financial affairs. The specifics of this filing vary from state to state
When Individuals May Use Chapter 11 Bankruptcy Petitions
Chapter 11 is known best as form of bankruptcy available to businesses. Chapter 11 is a debt reorganization bankruptcy for businesses, much like Chapter 13 allows debt reorganization for individuals.
When an individual or family has a debt load so high that they do not qualify for Chapter 13 bankruptcy, Chapter 11 becomes an option. In consumer cases involving extraordinarily high debt levels, Chapter 11 bankruptcy allows reorganization of individual debt — much like Chapter 13.
Easton Bankruptcy has more than 18 years, provided experienced and skilled representation for Easton, PA businesses regarding bankruptcy law issues such as Chapter 11 bankruptcy, business restructuring and debt restructuring.
Contact Easton Bankruptcy Lawyer today for a free consultation at 800-123-1234.
