Chapter 11 – Reorganizations

The purpose of a Chapter 11 bankruptcy is to allow an individual or business a limited amount of time free from creditor’s collection efforts to restructure its financial obligations so it may continue to operate in a normal fashion under a court approved plan of reorganization. Creditors of a business filing a Chapter 11 vote on the repayment plan and the plan must be approved by the court. The advantage of Chapter 11 is if a trustee is not appointed, the individual or business maintains control of its property during the bankruptcy and allow time to deal with creditors and to negotiate a plan of repayment.

Chapter 11 bankruptcy is normally for corporations and businesses but individuals may also file Chapter 11. Chapter 11 bankruptcy is complicated there may be advantages to filing under a different chapter. An individual should consult with an attorney before making the decision to file Chapter 11 bankruptcy.

Bankruptcy court filing fee: $1039.00 (price subject to change)

Additional Information on Chapter 11 Bankruptcy

Chapter 11 Bankruptcy 101

For a free bankruptcy consultation, call (517) 347-6700