Feeling Overwhelmed By Debt? Let’s Talk About a Chapter 11 Bankruptcy.It Maybe Your Solution.
What is a Chapter 11 Bankruptcy?
To best understand if a Chapter 11 Bankruptcy is for you let’s discuss who is eligible:
- Married Couples
- Joint Ventures
Chapter 11 Bankruptcy does not have debt or income requirements or limitation. Filing a chapter 11 bankruptcy allows debtors to continue running their business and propose a plan on how they can reorganize their finances to pay of creditors. Some selling points to a Chapter 11 are:
- Ability to retain property to keep your business operational
- Time to sell assets you do not need or can afford, to pay off creditors
- Modify payment terms on secure debts (i.e. real property or work related equipment loans)
- Discharge debts that cannot be paid off over the plan term
- Debtor does not have to turn over “disposable income”- the value of debtor’s plan payment equal at least the amount of his or her “disposable income”
Normally, a Chapter 11 has a term life of 3-5 years. This can be modified by the court, if you need more time to make the required payments.
In in a Chapter 11 bankruptcy, the appointment of a trustee is the exception and not the rule. The Court reserves the right to appoint a trustee for cases of gross mismanagement or fraud.