Chapter 11 Bankruptcy Definition
This Chapter 11 bankruptcy definition will help you to understand the basics as well as answer questions about whether or not you are eligible to file under Chapter 11.
How do you know if you qualify to file under Chapter 11? Many people have heard of Chapter 7 or even Chapter 13 bankruptcy, but Chapter 11 bankruptcy is also an option that may work well for people who own businesses or those who work in partnership with another business owner.
This type of bankruptcy allows the business owner to reorganize the payment and schedule of the overall debt into a more manageable plan. The debt payment schedule is usually extended, and the person or company filing agrees that the debt will be paid under these new terms.
To further explain the Chapter 11 bankruptcy definition, the person, company or business must file in court, and include:
In order to make the best ruling, the judge must be able to accurately assess all of these documents. It may be best to talk to a chapter 11 bankruptcy lawyer to make sure these documents are submitted correctly.
Before filing bankruptcy make sure you have money saved for court and lawyer fees. The filing fee for your case is $1,000, along with an administrative fee of $39. Some courts will allow payments in installments (with permission). Otherwise, you will have to pay your fees to the court clerk at the time you appear to file.
This Chapter 11 bankruptcy definition may help you decide whether or not you or your business partner(s) should file for bankruptcy, but you should also take a good look at the state of your business finances before and after making your claim. For example, set up your own schedule and timelines that will indicate when bills are due. If you know you can not meet the due dates for any reason, contact your creditors as soon as possible to make alternate arrangements.
Bankruptcy could help save your business. However, you should work out your debts by making arrangements with the creditors yourself if at all possible. Keeping a bankruptcy from showing up on your credit report is vital.
For more information on filing bankruptcy, knowing the difference between Chapter 7, Chapter 13, and Chapter 11 bankruptcy, or to get more details on Chapter 11 bankruptcy definition, visit this government site.
If you have concerns over meeting your accounts payables, bills, invoices, etc., that arrive monthly, you can benefit for debt restructuring. If your company has sales of over $500,000 a year and has $15,000 or more of debt, you qualify for the Commercial Debt Solutions Debt Restructuring program.
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