Chapter 11 bankruptcy is a type of bankruptcy used by businesses or individuals with at least $1,010,650 in secured debt, such as properties and vehicles and $336,900 in unsecured debt, such as credit cards. We mostly hear about Chapter 11 bankruptcy when companies such as GM file bankruptcy or celebrities such as Michael Vick and Stephen Baldwin seek bankruptcy protection; but Chapter 11 bankruptcy is also used by ordinary businesses and individuals seeking relief from crushing debt.
If you’re considering filing Chapter 11 bankruptcy expect to go through a process that requires multiple and often complex steps. Unlike Chapter 7 bankruptcy , which can usually be resolved in one hearing, Chapter 11 bankruptcy requires several hearings and the debtor(s) will usually face challenges from various creditors throughout the process especially when it comes to the repayment plan which must be submitted within 120 days of filing bankruptcy. During Chapter 11 bankruptcy, debtors can expect that creditors will challenge their repayment plans because creditors want to get paid as much as possible and as quickly as possible. Because this fact challenging repayment plans in Chapter 11 bankruptcy is just part of the process for creditors.
Also, while debtors filing Chapter 7 bankruptcy can expect to pay anywhere between $1600 and $6000 depending on the complexity of the case, debtors filing for Chapter 11 bankruptcy usually accrue fees starting at around $15,000 due to the complexity of this bankruptcy chapter. Chapter 11 bankruptcy requires a lot of administrative paperwork, a lot of hearings and a power bankruptcy attorney who is willing to fight on behalf of his/her clients. To find out more about Chapter 11 bankruptcy, please contact a Dallas-Fort Worth bankruptcy attorney .