Much like in other states, bankruptcy in New Hampshire means that the person or business making the filing has accumulated an overwhelming number of debts that cannot be matched by assets. There are different types of bankruptcy filings, however, and Chapter 11 bankruptcy has a specific set of instructions for filing.
To file a Chapter 11 bankruptcy request, the debtor must live in the state in which the proceeding will be requested. The debtor himself may file paperwork to move forward with bankruptcy, but, in extreme cases, a creditor may file on a debtor’s behalf. Specific documentation must be included in a Chapter 11 filing, including a breakdown of income and expenses, a list of unfulfilled contracts and leases, and an overall look at the person’s finances. An individual or spousal team must also show the court that financial counseling was sought prior to the bankruptcy filing and proof that a debt repayment plan is in place.
Once all required paperwork is compiled, the debtor must pay necessary fees to the court for the filing of the case and any administrative fees. An installment plan may be set up, according to state law, but all payments must be made in full before 180 days after the official filing. If the petition is approved, the debtor will undergo a reorganization process and maintain possession of some of his or her property.
Bankruptcy proceedings can be quite confusing, which may lead an inexperienced filer to commit errors that will slow or even stop the entire process. For this reason, many individuals who are interested in filing Chapter 11 bankruptcy feel a need to speak with a legal advisor prior to moving forward with their plans.
Source: Unites States Courts, “How Chapter 11 Works“, October 17, 2014