Chapter 11 Bankruptcy is the process created by the United States Bankruptcy Code to preserve the Going Concern Value of operating businesses and to allow for a decision to be made by company’s creditors and equity holders or the Bankruptcy Court (if agreement cannot be reached) as to how such going concern value will be shared, distributed or reallocated.
Chapter 11 provides for a “reorganization” that allows parties to keep assets while going through the bankruptcy process to get a Reorganization Plan approved by the Court. Creditors get to vote in a Chapter 11 so its nice to have as many friendly creditors as possible! Corporations and LLCs must file a Chapter 11 or 7. Individuals file a Chapter 11 when they don’t qualify for a Chapter 13 with the help of a Florida Bankruptcy Chapter 11 Attorney. Chapter 13 cases are only available to individuals who have less than about $1,184,200.00 in secured debt and about $394,725.00 in unsecured debt. Exceeding these
For individuals considering filing for bankruptcy protection, the more common option is to file Chapter 13 rather than Chapter 11. This is because Chapter 11 is a more complex process that requires more extensive reporting, more involved legal representation and higher fees. The primary reason that individuals in North Florida choose Chapter 11 bankruptcy over Chapter 13 is if the amount of their debt exceeds the debt ceiling established under Chapter 13 bankruptcy law. Even if debt limits are too high for Chapter 13, Chapter 11 still provides an option for individuals to restructure debt, prevent home foreclosure or vehicle repossession, stop IRS collection procedures and halt harassment by creditors.
This chapter of the bankruptcy code is the most complicated of the bankruptcies. Anthony W. Chauncey understands this complicated process and has confirmed dozens of Chapter 11 Plans for both corporate and individual clients.
What about my situation?
This is not legal advice about your specific situation. We need to discuss your situation and your objectives and your rights and duties in a Chapter 11 in detail. Since the initial office consultation for potential bankruptcy clients is without charge, you can contact our office by calling (877) 315-5107 to schedule an appointment or fill out the contact form on our website, and someone from our office will call you regarding your specific situation.