Chapter 11 Bankruptcy
Chapter 11 Bankruptcy
Corporations, partnerships, or sole proprietorships can file for Chapter 11 bankruptcy. These businesses are reorganized under this type of bankruptcy, and the debtor proposes a plan to pay off creditors over a certain period of time. Chapter 11 allows the business to continue operating while paying off their debts. The petition for bankruptcy may be filed voluntarily by the debtor, or be an involuntary petition filed by the creditor.
The debtor must file with the court:
- a schedule or current income and expenditures
- a statement of financial affairs
- a schedule of assets and liabilities
- a schedule of executory contracts and unexpired leases
The fee for filing Chapter 11 bankruptcy is $1,000. This may be the most expensive form of bankruptcy, but it doesn't put the owner's personal finances at stake. The Bankruptcy Court must be informed of major business decisions of entities that file Chapter 13 bankruptcy.
As in the other bankruptcy cases, a trustee is appointed to monitor the payment of debts. Chapter 11 uses a U.S. trustee to monitor debt payments, meet with creditors, and develop a reorganization plan. After the plan is developed, the Court, creditors, and stockholders can accept and confirm it before it is executed.
If you think that filing Chapter 11 bankruptcy is your best option to protect your financial future, contact the bankruptcy lawyers at the Coye Law Firm. We can review your case and guide you through the bankruptcy system.
