What is Chapter 11 bankruptcy? A Chapter 11 bankruptcy, commonly referred to a “reorganization” bankruptcy is designed to give financially distressed an opportunity to restructure their debt. Before entering into a Chapter 11 bankruptcy, the debtor has to meet certain eligibility criteria.
WHAT IS CHAPTER 11 BANKRUPTCY: REQUIREMENTS
A debtor may not file for a Chapter 11 bankruptcy if during the preceding 180 days a prior bankruptcy filing was dismissed as a result of the being unable to comply with the orders of the court, failure to appear before the court or if the case was voluntarily dismissed once creditor sought relief from the court to recover assets on which they hold liens. The debtor may also not file a Chapter 11 bankruptcy before fulfilling the credit counseling and debtor education requirements. Once these conditions have been met, all debtors are required to file a bankruptcy petition with the court.
WHAT IS CHAPTER 11 BANKRUPTCY: THE PETITION
A chapter 11 bankruptcy petition includes all the financial documents of the organization that indicate financial hardship as well as a standard form. The petition may include:
(1) schedules of assets and liabilities;
(2) a schedule of current income and expenditures;
(3) a schedule of executory contracts and unexpired leases;
(4) a statement of financial affairs;
(5) certificate of credit counseling; and
(6) debt repayment plan
These are only a few of the documents that may be required by the court. Depending on finances of your particular situation, the court may request for additional documents.
CHAPTER 11 BANKRUPTCY LAWYERS
A Chapter 11 bankruptcy can be a long and complicated process, but not impossible. It is recommended to hire an experienced business debt relief lawyer to be on your side during the process. Our business debt relief lawyers will thorough analyze your case. In some instances, filing bankruptcy may not be in your best interest. If this is the case, then there are other options available to you. Also see: