Filing for bankruptcy can be complex. There are multiple types of bankruptcy. Finding the right one to solve your challenges can be tricky. You need to consider whether you can make payments in the future, the value of your current assets and the types of debts you wish to resolve.
One reason people choose to hire a Chapter 11 bankruptcy lawyer from Stiberman Law is that we really do put clients first. You’ll realize from the moment you speak with us that our primary goal is to help. You can schedule a free consultation by calling our friendly team.
We understand that the need to file bankruptcy can come from a variety of factors, many of which are outside your control. We’re not here to judge you. We’re here to provide you with reliable information, based on the specifics of your situation.
Chapter 11 pops up in news headlines about large corporations that have fallen on hard times. But it can be applied to individuals as well. Chapter 13 is much more common for individual filers, but in certain circumstances, Chapter 11 bankruptcy is a better fit.
Chapter 11 bankruptcy is designed to help businesses reorganize their debts. If your personal financial picture is complex, involving partnerships and other financial structures, Chapter 11 may serve you well.
This is not a liquidation. This type of bankruptcy is a restructuring of debts, with the goal of minimizing disruption.
Debtors filing Chapter 11 bankruptcy will be required to show how they plan to better manage their debts in the future. They may be able to retain control of their assets throughout the bankruptcy.
For businesses filing Chapter 11, they need to present a workable plan to their debtors that shows how they can turn their business around. This could include contract renegotiations with customers or seeking new sources of revenue.
One reason an individual debtor may not qualify for a Chapter 13 bankruptcy is that their total secured debt exceeds $1,149,525, and/or their total unsecured debt exceeds $383,175.
Chapter 11 bankruptcy does not have these limitations. It is specifically designed to accommodate substantial debts wrapped up in a variety of financial instruments.
Another reason that small businesses and individuals may choose to file a Chapter 11 bankruptcy is because of the increased flexibility in repayment terms. For example, a Chapter 13 bankruptcy requires that mortgages on a rental property be repaid within 60 months. Even with a lower loan balance and lower interest rate (negotiated during the bankruptcy), this is a tight window to pay off a property.
Chapter 11 bankruptcies do not have this 60 month requirement. There are other examples where a specific type of bankruptcy filing will better serve your needs. Your best bet is to sit down and discuss your situation with a Chapter 11 bankruptcy lawyer. Even if Chapter 11 isn’t the best fit, we can work together to find a solution that makes the most sense.
The IRS has a standard formula for calculating disposable income. You can click here to view Official Form B 22C2. It shows how the calculation is completed.
Chapter 11 filings use a different standard that may be more favorable to the debtor.
In any bankruptcy filing, you are going to be faced with a series of forms and questions. Answering incorrectly, or filing the wrong form can have a significant impact on the structure of your bankruptcy.
This is one reason, among many, that we recommend hiring an experienced Chapter 11 bankruptcy lawyer to handle your filing. Our experience allows us to focus on the things that matter, giving our clients the best possible chance at a better tomorrow.
Remember, when you hire an experienced attorney to handle your bankruptcy filing, you may avoid costly errors. Based on some of the “do it yourself” filings we’ve seen work their way through the court system, it can be cheaper to hire an expert.
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