Personal Bankruptcy Chapter 11
If you've decided that filing for bankruptcy might be the right choice for your financial obligations, then congratulations: you've already made an important decision about how to move beyond the debt in your life.
Depending on your situation, you may be eligible to file one or more different chapters of bankruptcy. Chapter 11 is one such chapter available to individual filers, typically those who have either secured or unsecured debts beyond the limits allowed in Chapter 13 bankruptcy.
To speak with a bankruptcy lawyer about the specifics of filing for personal bankruptcy (Chapter 11, Chapter 13 or Chapter 7), please fill out this form. You can arrange a free, no-obligation initial consultation with an attorney in your area.
Is Personal Bankruptcy Chapter 11 Right for Me?
Many people most familiar with Chapter 11 bankruptcy as the chapter under which businesses often file to reorganize their debts. Individual consumers are also allowed by the court to file a reorganization plan under Chapter 11.
Here's a look at how different types of bankruptcy stack up against one another:
- Chapter 7 bankruptcy: This type of personal bankruptcy tends to work well for filers who have little or no regular income and own few, if any, valuable items. Chapter 7 bankruptcy offers filers a complete discharge of their eligible unsecured debts. In other words, filing under Chapter 7 of the U.S. Bankruptcy Code may allow you to completely eliminate your obligation to pay some of your debts. A Chapter 7 bankruptcy petition costs $306 to file with the court.
- Chapter 11 bankruptcy: This chapter is popular among businesses, as it allows them to reorganize their financial obligations while keeping their doors open. Individuals can also file under Chapter 11, typically if they have significant debts or are in some other such special circumstance and have a good reason to chose this chapter. It costs $1,046 to file a Chapter 11 case with the court, which might in itself be a barrier for some potential filers.
- Chapter 13 bankruptcy: Also popular for individuals, this type of bankruptcy tends to work well for filers who have a steady source of income and/or assets that they are not protected by state exemptions. Chapter 13 works in a similar fashion to Chapter 11, allowing filers to reorganize their debts into an affordable monthly payment plan over the course of three to five years. Filing a Chapter 13 petition with the court costs $281.
The fees listed above are current as of November 2011.
How Do I Know What Type of Bankruptcy to File?
No two people are exactly alike, and neither are any two bankruptcy cases. In order to determine whether filing personal bankruptcy under Chapter 11, Chapter 13 or Chapter 7 will work best for you, you may want to consult with a bankruptcy lawyer, who can examine the specifics of your case and help you choose the most appropriate type of bankruptcy.
Connect with a Bankruptcy Lawyer Today
To get in touch with a bankruptcy lawyer and ask your questions about personal bankruptcy Chapter 11 and any other issues related to bankruptcy, all you have to do is fill out this free case evaluation form.