What is Chapter 11 Bankruptcy? Your Questions Answered Here
Chapter 11 bankruptcy might not be the most common form of bankruptcy — only about 8,980 Chapter 11 bankruptcies were filed in 2013 — but that doesn’t mean it isn’t an option for those who are qualified to file for it.
Similar to Chapter 13 bankruptcy, Chapter 11 bankruptcies set up a debt reorganization plan with the filer so the debt can be repaid over a set time period in a more manageable way. Unlike Chapter 7 bankruptcies, a Chapter 11 bankruptcy doesn’t discharge any debt.
Want to know more about Chapter 11 bankruptcy explained and all that it entails? Here are some of the most common questions people just like you have about Chapter 11 bankruptcy, along with their answers:
Who can file for Chapter 11 bankruptcy?
Typically, businesses and other organizations are the most common entities to seek help with filing bankruptcy with a Chapter 11 bankruptcy attorney. However, Chapter 11 bankruptcy for individuals does exist — it’s just very rare. Typically, an individual filing for Chapter 11 bankruptcy is a sole proprietor of a business venture.
How long does Chapter 11 bankruptcy last?
There is no set limit to the length of time a Chapter 11 bankruptcy can take; however, the majority of cases filed will take about three to five years. This is because businesses’ and companies’ financial affairs tend to be much more complicated than those of individuals.
Does my company need legal representation to file for Chapter 11 bankruptcy?
While there’s no law that states you need to have a lawyer to file for bankruptcy, it’s a big mistake to not hire a Chapter 11 bankruptcy attorney for you or your company’s case. Bankruptcy attorneys can make sure all your paperwork is filed correctly and completely, preventing costly delays or having the case thrown out of court.
Want to know even more about Chapter 11 bankruptcy explained? Feel free to ask any other questions you may have about Chapter 11 bankruptcy by leaving a comment below. More info like this.