What is Chapter 11 Bankruptcy?
Chapter 11 Bankruptcy is considered the most complicated form. While it enables debtors to get a fresh start, it is a long, expensive process. Filing for chapter 11 entails reorganizing one’s assets, affairs, and debts. It’s a restructuring process which allows the company to keep operating while resolving debts with creditors. It’s for this reason that we often see chapter 11 filed by larger corporations.
Usually, under chapter 11, an entity can continue to operate as normal but will lose authority over their assets. That is – they forfeit the right to sell large assets, begin or break a lease, close or expand their business, or take on new debts. Under chapter 11, the court must approve all future decisions until the debts have been fully resolved.
Do I qualify for Chapter 11?
Chapter 11 bankruptcy is an option generally considered by larger companies, corporations, and partnerships. However, individuals still have the option to file for chapter 11. Individuals usually consider this option only if they have too much debt or income to qualify for chapter 7 or 13 bankruptcy.
What will I need to file?
The process for chapter 11 bankruptcy is long – often ranging from six months to two years. The challenge you’ll face in a chapter 11 bankruptcy is settling on a reorganization plan that benefits your creditors. For chapter 11 to be successful, you’ll need to prepare to downsize in a way that will allow for a feasible, timely repayment plan. Your lawyer can help you work through this process.
How can I protect my family?
Facing bankruptcy is frightening for anyone. There are many ways you can protect your family through this. The first is to have a good lawyer. Steven Willock has been practicing bankruptcy law in Tacoma, WA for more than 6 years, and has practiced for another decade before that in the rigorous California. Having a good lawyer in your corner is essential to make the process go smoothly and to ensure the best possible outcome for you and your family. In addition to your lawyer, your best protection is to get organized, and get prepared. Know your options so you can make the best possible decision. Your family will thank you!