This Chapter is typically used for business entities. A Chapter 11 debtor proposes a plan of reorganization to keep the business alive and pay creditors over time; the plan must be approved by the Court and cannot exceed five years. Chapter 11 is more expensive than Chapter 13, but has no debt limits.
A Chapter 11 bankruptcy is a type of bankruptcy reorganization that is available to both individuals, and business entities such as corporations, limited liability companies and partnerships. Chapter 11 is primarily used by businesses that want or need to keep operating during their reorganization.
The goal of this type of bankruptcy is to file a confirmable Chapter 11 reorganization plan. There are many rules about what makes a plan confirmable. Creditors will get a chance to vote on whether or not the plan should be confirmed. Prior to plan confirmation, Chapter 11s are supervised by the Federal Bankruptcy Court and by the Office of the United States Trustee (UST). The Chapter 11 debtor will be required to pay quarterly trustee fees based on the debtor’s business money distributions during the quarter. Monthly status reports must be filed with the court and with the UST office.
In a typical Chapter 11, the debts of the organization will be restructured to provide payments to the creditors under more favorable terms to the debtor. This allows the company to restructure their debt and still remain a viable business. The length of a loan and interest rate are terms that are negotiable during formulation of a Chapter 11 plan.
Chapter 11 bankruptcy is extremely complicated and should not be attempted without the assistance of a highly experienced bankruptcy attorney. Chapter 11s are very expensive, but the value you receive in return can be exceptional when you have our experience on your side. Call (417) 4NO-DEBT to see how we can help.
Kind Words from our Clients
I want to thank Mr. Tinsman and his staff for assisting me during this very difficult time financially for me. Life has a way of ‘throwing us some unexpected curves’, so to speak, and can cause us a great deal of stress. I recommend Mr. Tinsman and his staff to anyone whom needs bankruptcy assistance. His professionalism and sincere regard [for] my situation was stellar! The legal staff assistants were always so very kind and courteous as well.
Having two sick children with chronic illnesses and bills piling up over our heads, my husband and I walked into Jordyn’s office completely overwhelmed and broke and not knowing which way to turn. The team assessed the situation and gave us the direction we needed to go and the steps to get there. A few weeks later, our debt is discharged and it is like the weight of the world is off our backs. The Tinsman Bankruptcy Team put our family back together and honestly saved our marriage along the way too. THANK YOU! Our lives are changed because of your help. Sometimes you don’t realize what kind of stress you are under and the toll it is taking on your body, until the stress is gone. If you need an excellent lawyer, contact Jordyn’s office. They will be the compass you need to get through your financial storm.
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