Both individuals and businesses can qualify for this type of bankruptcy. In contrast with Chapter 13, Chapter 11 provides no limit to the amount of debt discharged or repaid. Plans under Chapter 11 bankruptcy can be longer than the 5-year period under Chapter 13.
Both chapters include reorganizing debts into repayments plans. Nevertheless, there are a few differences between the two types of bankruptcy. The main difference is the debt limit Chapter 13 enforces. There is only a certain amount of secured and unsecured debt when filing under chapter 13.
Yes, its the most expensive form of bankruptcy in the U.S. Only the filing fee can cost over $1,000, which is triple the cost of Chapter seven bankruptcy. Moreover, negotiations can involve a lot of obstacles, and high legal fees. A small Chapter eleven bankruptcy will cost as much as $10,000. Larger cases can cost way more.
Yes, unlike Chapter 13, there is no time limit. There are different repayment plans and the length of the plan is based on court preference and the specific case. Consequently, repayment plans under chapter 11 can be quite long if the court determines so in order to give plenty of time to the debtor to reconcile their current debts. To obtain chapter 11 bankruptcy information, contact Gallardo law Firm.
Yes, this is a matter of public record therefore the public has access to these files through the courts. For example, if you own a business and are currently filing for Chapter 11, your customers will have access to this information. This information will appear on your credit report for 10 years.
Yes, they can receive a formal discharge. Usually, after the repayment plan has been established and approved, the remaining debts are discharged. From there on, debtors are accountable to make payments as instructed by the court. Its different for individuals as their debts are only discharged when the plan has been successfully completed. Some non-dischargeable debts include marital debts, student loans, and civil lawsuit judgments.
Debtors are usually able to convert their case from one chapter to the other. This occurs when the debtor-in-possession cant propose a plan accepted by the court. Yet the conversion can only be requested by creditors through filing a motion with the court.
Individual debtors have no discharge under Chapter 11 unless the debtor makes the required payments. The proposed plan can be objected and payment in full can be forced or a receipt of all disposable income can be obtained. The cost is another issue to think about. Chapter 11 bankruptcies can be costly and time consuming because they are quite complex. A courts approval is required in order to dismiss a Chapter 11 whereas a Chapter 13, for example, can be dismissed at any time. Hiring a Chapter 11 lawyer can save you time and money. Call Gallardo law Firm today to find out more about how we can help you navigate through your case with ease.