Filing Chapter 11 Reorganization

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A case to file chapter 11 reorganization of the United States Bankruptcy Code is frequently referred to as a "business reorganization bankruptcy". While individuals as private citizens and not a sole proprietorship alone, are not precluded from using chapter 11, it is more typically used to reorganize a business, which may be a corporation, sole proprietorship, or partnership. If you feel you need to file a ch 11 bankruptcy, be sure to contact a Chapter 11 Lawyer.

Chapter 11 is used mostly by businesses. Under chapter 11, you may continue to operate your business, but your creditors and the court must approve a plan to repay your debts. There is no trustee unless the judge decides that one is necessary; if a trustee is appointed, the trustee takes control of your business and property.

Financial Justification of Chapter 11 Bankruptcy:

  • Liquidation Analysis
  • Prior Credit History
  • Income and Expenditures
  • Assets and Liabilities
  • Earning Projections

Bankruptcy Law Is A Federal Law. This Sheet Gives You Some General Information About What Happens In A Bankruptcy Case. The Information Here Is Not Complete. You May Need Legal Advice.

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Chapter 11 Highlights

Chapter 11 is a "Reorganization" bankruptcy

Assets are not Liquidated under Chapter 11

This type of Bankrupcy is more expensive and complicated than other types

Chapter 11 is usually only used by businesses

Debts are not discharged under chapter 11, but instead a repayment plan is established

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