Chapter 11

Call For Your Appointment TODAY! 571-432-0300

Chapter 11 Bankruptcy

The following is a brief overview of a Chapter 11 bankruptcy. You are strongly advised to consult with an attorney to get a more detailed explanation of the bankruptcy process and what it can and cannot accomplish for you. Each person's situation is unique and requires personalized advice. Also bankruptcy and related laws change, as do court rulings, so the information on this website should not be relied upon.

A Chapter 11 type bankruptcy is what most people think of as a business bankruptcy. However, individuals can also file a Chapter 11 type bankruptcy.

When an individual files a Chapter 11, it is like a very complicated and very expensive Chapter 13 type bankruptcy. There are more requirements put on a Chapter 11 filer than on a Chapter 13 debtor. For instance in Chapter 11, the debtor must file monthly operating reports disclosing the debtor's monthly income and expenses as well as pay a quarterly fee to the U.S. Trustee based upon the debtor's expenses for that quarter.

The Chapter 11 debtor must file and have approved by the bankruptcy court within 120 days of the filing of the case a disclosure statement and plan of reorganization. Then once the creditors have voted on the plan and the Bankruptcy Court has approved it, then the debtor starts making payments to the creditors according to the approved plan.

Whereas, a Chapter 13 debtor must file its plan within 14 days of filing the case and begin making plan payments within 30 days of the filing of the case. Unless a creditor or the Chapter 13 Trustee successfully objects to the Chapter 13, it will be confirmed and that is how much and in what order the creditors will be paid over the length of the plan.

Finally, the Chapter 11 is for both individuals and businesses, but the Chapter 13 is only for individuals.

Due to the complexities of a Chapter 11, a person who is considering filing a Chapter 11 for themselves or their business is best advised to consult with an experienced bankruptcy attorney, like the ones at The Lilly Law Group, PC.

Click HERE to learn more about a Chapter 11 type bankruptcy.

You can contact The Lilly Law Group, PC by calling 571-432-0300 to schedule an appointment or click HERE.

***********************************************************************************************************
The materials on this website are not intended as legal advice but only informational. For any legal questions or matters you may have, you should consult with your own attorney as no attorney client relationship is formed between you and The Lilly Law Group, PC by you visiting this website. Also, any information you provide by visiting this website is not confidential and The Lilly Law Group, PC may represent a party that is adverse to you. The Lilly Law Group, PC's attorneys are only licensed to practice law in Virginia and the District of Columbia .
***********************************************************************************************************