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Chapter 11 Bankruptcy

Helping clients across Florida achieve financial freedom, since 1998.
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Your Path to Financial Recovery Starts Here

Drowning in business debt doesn’t mean your dreams are over. Chapter 11 bankruptcy offers Florida business owners a powerful tool to restructure overwhelming obligations while maintaining control of operations. You can keep your doors open, protect valuable assets, and negotiate manageable payment terms with creditors.

At Stiberman Law, P.A., we transform the Chapter 11 process from a daunting legal maze into a strategic pathway toward financial stability. Our experienced team has guided countless Florida businesses and individuals through successful reorganizations, helping them emerge stronger and more resilient.

You’ll gain immediate protection from creditor harassment through automatic stay provisions. Your business operations continue uninterrupted while we negotiate favorable debt restructuring terms. Most importantly, you retain ownership and decision-making authority throughout the entire process.

Don’t let financial pressure force you into hasty decisions. Chapter 11 provides breathing room to rebuild thoughtfully. Keep reading and discover how reorganization can revitalize your business’s future.

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Your Trusted Chapter 11 Bankruptcy Lawyer in Florida

Chapter 11 bankruptcy can appear daunting. However, for many, it offers the chance to restructure, continue operations, and gain much-needed breathing room from creditors. Our team is dedicated to navigating these complexities with you, providing personalized support, actionable strategies, and the tools to pursue a stronger financial position.

At Stiberman Law, P.A., we take time to listen, understand your concerns, and develop a reorganization plan tailored to your specific goals. You do not have to carry this burden alone. When you’re ready to move toward stability, reach out to us for a free, confidential consultation about your options.

What Is Chapter 11 Bankruptcy?

Chapter 11 bankruptcy is primarily designed for businesses, but individuals with significant debt may also qualify. As a “reorganization” bankruptcy, it allows you to adjust your debts while maintaining business operations. Unlike Chapter 7, which involves liquidation, Chapter 11 offers a structured path to pay creditors over time, making it a lifeline for many Florida business owners. At Stiberman Law, P.A., we guide you through every requirement and help you take advantage of provisions that protect your operations and assets.

Chapter 11 bankruptcy is an option available to a wide range of entities. Both large corporations and small businesses can seek relief under Chapter 11, and any type of business entity can file, including corporations, LLCs, partnerships, and sole proprietorships. This includes everything from family-owned businesses to multinational corporations. Individuals may qualify for Chapter 11 if their debts exceed Chapter 13 limits.

There are no specific debt limits for Chapter 11, making it suitable for those with complex financial obligations. We carefully evaluate each client’s situation to determine if Chapter 11 is the right approach, taking your business structure and unique needs into account.

Eligibility Requirements

If you are considering Chapter 11, it is wise to check your eligibility before taking any step forward. Here’s what you should know.

To qualify, you generally need to:

  • Complete credit counseling with an approved provider within 180 days before filing (individuals only)
  • Demonstrate that the bankruptcy is filed in good faith and not solely to delay creditors
  • Remain current with tax return filings for your business

Our team ensures every requirement is met and helps you avoid common pitfalls that can delay your case.

Subchapter V of Chapter 11

The Small Business Reorganization Act (SBRA) ushered in Subchapter V of Chapter 11. It is designed to expedite the Chapter 11 bankruptcy process for small businesses with debts totaling approximately $3.4 million.

Unlike traditional Chapter 11 proceedings, Subchapter V imposes fewer requirements and administrative costs on small business debtors. Some key features of Subchapter V include:

  • Expedited Timeline: Subchapter V accelerates the bankruptcy process, allowing small businesses to develop and confirm a reorganization plan within a shorter timeframe.
  • Ownership Retention: Small business owners can retain ownership of their businesses under Subchapter V, provided they propose a feasible reorganization plan that treats creditors fairly.
  • Elimination of Creditors’ Committees: Unlike traditional Chapter 11 cases, Subchapter V eliminates the requirement to form official committees of unsecured creditors, reducing administrative expenses.
  • Cost-Effectiveness: Subchapter V reduces administrative costs and legal fees, making the bankruptcy process more accessible and affordable for small businesses.

If your business debts fall under the current threshold, Subchapter V could provide the relief and flexibility you need. We help you determine if this is the right fit for your business and guide you through every step—from initial filing to plan confirmation and beyond.

The Chapter 11 Process: How It Works

Understanding the Chapter 11 process is essential to setting realistic expectations and planning your next steps. At Stiberman Law, P.A., we break down the process, supporting you from preparation to discharge.

Step 1: Determining if Chapter 11 Is Right for You

Before filing, we thoroughly review your circumstances to ensure Chapter 11 bankruptcy is your best option. We discuss your options and provide honest guidance tailored to your goals, whether that involves maintaining business operations or protecting assets from creditors.

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Step 2: Pre-Filing Requirements and Credit Counseling

If you are an individual debtor, you must complete credit counseling within 180 days of filing. We coordinate this step for you and assist with gathering necessary documentation to satisfy the bankruptcy court’s requirements.

Step 3: Preparing and Filing the Petition

A Chapter 11 case begins when a petition is filed with the bankruptcy court in the district where the debtor lives, is domiciled, or primarily conducts business. The debtor can be either a business or an individual. Most cases are voluntary petitions filed by the debtor, but in some situations, creditors can initiate an involuntary petition.

We prepare and file the petition and all financial schedules, including schedules of assets and liabilities, current income and expenditures, statement of financial affairs, and executory contracts and unexpired leases. This initiates your case and triggers automatic protections under bankruptcy law.

Step 4: Automatic Stay

Once the petition is filed, an automatic stay takes effect. This means creditors must stop any collection actions, such as foreclosures, repossessions, and lawsuits. The stay gives you breathing room to reorganize your finances without immediate pressure from creditors.

Step 5: Appointment of Committees and Bankruptcy Trustees

In some cases, the bankruptcy court appoints a creditors’ committee or, for subchapter V cases, a bankruptcy trustee. We stand by your side throughout creditor meetings and ensure your interests are represented.

Step 6: Debtor-in-Possession Period

In Chapter 11 bankruptcy, you often remain in possession of your assets. You continue to operate our business as usual, but with court supervision. You must comply with reporting requirements and may need bankruptcy court approval for any major business decisions.

As a debtor in possession, you maintain control of your assets until the case is confirmed, dismissed, or converted to chapter 7. There may be instances, such as the debtor’s breach of fiduciary duties, where a chapter 11 trustee is appointed.

Step 7: Meeting of Creditors (341 Meeting)

In this meeting, creditors and the U.S. trustee examine your finances and ask you questions under oath. Our attorneys prepare you thoroughly and attend the meeting, ensuring you’re protected throughout.

Step 8: Filing the Disclosure Statement and Reorganization Plan

You are required to craft a disclosure statement summarizing your financial position and a reorganization plan detailing how creditors will be paid. Creditors whose rights are impacted by this plan will vote to accept or reject it.

Step 9: Confirmation Hearing and Plan Implementation

The bankruptcy court holds a confirmation hearing. If the plan is feasible, meets legal standards, and is proposed in good faith, it may be confirmed. Depending on your case specifics, you may qualify for a discharge of remaining debts. We help ensure ongoing compliance and a smooth transition out of bankruptcy.

Throughout the process, our firm handles communications, monitors deadlines, and supports you with ongoing advice and advocacy. We’re here for you at every stage, ensuring all requirements are met, minimizing disruption to your business, and helping you achieve a successful outcome under Florida’s bankruptcy laws.

Why Opt for Chapter 11

When you’re up against mounting debts, Chapter 11 bankruptcy offers a strategic opportunity to restructure and move toward recovery. However, with the many bankruptcy chapters available, it may be difficult to determine which one is the right fit for you.

Here are a few reasons to choose Chapter 11:

1. It Gives You More Control

Chapter 11 allows you to stay in charge as “debtor in possession”, making key decisions for your business or personal estate. This autonomy means you can:

  • Continue normal business operations
  • Develop and propose a plan that suits your needs
  • Select which contracts or leases to assume or reject
  • Implement operational changes without immediate liquidation pressure

2. It Accommodates Larger, More Complex Debts

One reason an individual debtor may not qualify for a Chapter 13 bankruptcy in 2025 is that their total secured debt exceeds $1,580,125, and/or their total unsecured debt exceeds $526,700. Chapter 11 bankruptcy does not have these limitations. It is specifically designed to accommodate substantial debts wrapped up in a variety of financial instruments.

3. It Provides Longer Repayment Windows

Another reason that small businesses and individuals may choose to file a Chapter 11 bankruptcy is the increased flexibility in repayment terms. For example, a Chapter 13 bankruptcy requires that mortgages on a rental property be repaid within 60 months.

Chapter 11 provides more flexibility to negotiate favorable payment schedules and allows time to sell assets, restructure agreements, or recover from economic downturns.

Recent Chapter 11 Developments

Chapter 11 bankruptcy continues to evolve through court decisions, legislative changes, and shifts in filing trends. Below are key recent developments relevant to businesses and practitioners:

  • May 2025: Commercial Chapter 11 Filings Increase 62%

Commercial Chapter 11 filings increased by 62% in May 2025 compared to April 2025, according to the American Bankruptcy Institute. This surge highlights rising financial distress among businesses amid economic pressures.
Source: American Bankruptcy Institute

  • June 2024: Subchapter V Debt Cap Expired

The temporary $7.5 million debt eligibility cap for Subchapter V of Chapter 11 expired on June 21, 2024. The cap reverted to $2.7 million, limiting access to streamlined small business bankruptcy proceedings. For the year 2025, the cap is $3,424,000.
Source: Reuters

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  • June 2024: Supreme Court Rejects Nonconsensual Third-Party Releases

The U.S. Supreme Court ruled that Chapter 11 plans cannot include nonconsensual releases shielding third parties (like company owners or executives) from liability, significantly impacting mass tort and complex reorganizations.
Source: U.S. Bankruptcy Court (Western District of Virginia)

How Can a Chapter 11 Bankruptcy Attorney Help You

Filing for Chapter 11 can feel overwhelming, especially when you’re trying to keep your business afloat. That’s where Stiberman Law, P.A. steps in. We act as your guide and advocate through a process that’s often complex, high-stakes, and full of legal pressure.

From the beginning, our role is to reduce uncertainty. We break down your options clearly, help you understand the risks, and give you the confidence to move forward with a well-informed plan. As your case progresses, we help you stay focused, cutting through the legal noise so your priorities stay front and center.

When tough decisions arise, whether you’re restructuring debt, negotiating with creditors, or working to protect your key assets, we provide steady legal insight based on years of experience. Our goal is to help you make strategic choices that support both immediate stability and long-term recovery.

Most importantly, Stiberman Law, P.A. gives you room to lead. While we manage filings, deadlines, and negotiations, you can concentrate on running your business. Chapter 11 isn’t just about legal compliance—it’s about creating a workable path forward. We’re here to make that path clearer, more stable, and built around your goals.

Why Choose Stiberman Law, P.A.?

When the stakes are high, experience and strategic guidance make all the difference. At Stiberman Law, P.A., we offer the commitment, resources, and knowledge that comes from over 20 years of helping Florida businesses and families through bankruptcy with confidence and dignity.

Robert Stiberman is a distinguished business bankruptcy lawyer renowned for his experience in navigating complex legal matters throughout Florida. Mr. Stiberman holds admission to the United States District Court for the Southern, Middle, and Northern Districts of Florida, allowing him to represent all Florida businesses and families wherever they are.

Mr. Stiberman earned his Juris Doctorate from the University of Miami School of Law and has been a member in good standing of the Florida Bar since 1998, maintaining an impeccable standing within the legal community. Moreover, he brings a wealth of experience as a former Supreme Court Certified Mediator, augmenting his ability to facilitate constructive negotiations and mediations. This unique background enhances his effectiveness in guiding clients through the intricate landscape of Chapter 11 proceedings.

In Chapter 11 cases, adept negotiation skills are paramount, as attorneys must engage with many stakeholders, including creditors and suppliers, to secure favorable terms for debt repayment and potentially mitigate losses. Robert’s honed negotiation insight not only helps in averting protracted litigation but also fosters agreements that position debtor companies for enhanced resilience and financial stability post-bankruptcy.

With over 20 years of dedicated service, Robert has consistently delivered comprehensive representation to Florida bankruptcy clients, earning a sterling reputation for his unwavering commitment to achieving optimal outcomes.

Schedule Your Free Consultation

If overwhelming business debt is keeping you awake at night, know that you’re not alone. Many Florida business owners and individuals face moments where their financial future feels uncertain. 

Taking control of your financial future starts with a simple step: reaching out for guidance. At Stiberman Law, P.A., we offer free consultations for Chapter 11 bankruptcy and related matters—so you can explore your options in a supportive, no-pressure environment.

At Stiberman Law, P.A., we understand how much is at stake when your business or personal financial security is on the line, and we’re here to guide you every step of the way.

Your future is too important to risk. Contact Stiberman Law, P.A. to schedule your free consultation today and take that first step toward new financial opportunities.

Frequently Asked Questions

Chapter 11 bankruptcy is a complex legal process primarily used by businesses to reorganize their debts and finances while continuing operations. Here are some frequently asked questions (FAQs) regarding Chapter 11 bankruptcy:

What Is Chapter 11 Bankruptcy?
Chapter 11 bankruptcy is a form of bankruptcy under the U.S. Bankruptcy Code that allows businesses to restructure their debts and operations while remaining operational. It offers a mechanism for businesses to reorganize and potentially emerge from financial distress.
Who Can File For Chapter 11 Bankruptcy?
Businesses such as corporations, partnerships, and LLCs typically file for Chapter 11. However, individuals with significant debts or assets may also file under Chapter 11 if they don’t qualify for other bankruptcy chapters, such as Chapter 7 or Chapter 13.
What Are the Benefits of Filing For Chapter 11 Bankruptcy?
Chapter 11 provides several benefits, including restructuring debt, renegotiating contracts, selling assets, and continuing operations under bankruptcy court supervision. It also offers protection from creditors’ collection efforts while the reorganization process takes place.
How Does the Chapter 11 Process Work?
The Chapter 11 process begins with filing a petition in bankruptcy court. The debtor (the business or individual filing for bankruptcy) becomes a debtor in possession and assumes the responsibilities of a bankruptcy trustee. The debtor then creates a reorganization plan outlining how it will address its debts and obligations. Creditors vote on the plan, and if approved by the court, it becomes binding on all parties.
What Is a Reorganization Plan?
A reorganization plan outlines how the debtor intends to restructure its debts and operations to become financially stable. It typically includes provisions for debt repayment, asset sales, renegotiation of contracts, and other measures to improve the debtor’s financial situation.
Can the Debtor Continue Operating Their Business?
Yes, typically, the debtor remains “in possession” and can continue to operate the business. They act similarly to a trustee and may borrow new money with court approval.
What Happens to Creditors in Chapter 11?
Creditors have the opportunity to vote on the reorganization plan. The plan outlines how the debtor will pay back the creditors over time.
How Long Does Chapter 11 Bankruptcy Last?
The length of a Chapter 11 case varies depending on the complexity of the debtor’s financial situation and the effectiveness of the reorganization efforts. Some cases may be resolved relatively quickly, while others can take several years.
What Happens to Existing Contracts and Leases in Chapter 11 Bankruptcy?
Existing contracts and leases may be assumed, rejected, or renegotiated during the Chapter 11 process. The debtor has the option to continue performing under favorable contracts and leases or reject those that are burdensome or no longer economically viable.
Can a Business Continue to Operate During Chapter 11 Bankruptcy?
Yes, one of the primary goals of Chapter 11 bankruptcy is to allow the debtor to continue operating while it restructures its debts and finances. However, significant business decisions may require court approval, and the debtor must comply with specific reporting and disclosure requirements.
Why Is Chapter 11 so Expensive?

Chapter 11 involves detailed legal procedures, multiple filings, ongoing court oversight, reorganization plans, and complex negotiations, explaining the high cost. The process often includes higher court and attorney fees as well as additional administrative expenses.