Known as reorganization bankruptcy, Chapter 11 bankruptcy gives you a chance to reorganize your debts so that you can pay them down and keep your business open. It's possible for individuals to choose this kind of bankruptcy as well, though it is more common for businesses.
Are there fees to pay when you file for bankruptcy?
When you file for a Chapter 11 bankruptcy, you must pay two fees. The first is a $1,167 case fee, and the second is a $550 fee for administrative costs. Since you are struggling financially, it's possible to pay this fee in installments if you receive the court's permission to do so.
What kind of information is required when you file for bankruptcy?
When you turn in a petition for bankruptcy, you need to include information such as your name, tax identification number and the location of your main assets. If you already have a plan, this should be submitted to the court. If not, you should submit an intention to file a plan to get out of your current financial straits. Once you have this paperwork, you may submit the voluntary petition for relief with the bankruptcy court.
Once you are approved for a Chapter 11 bankruptcy, you become known as a debtor in possession. That means that you owe on your possessions but that you will keep possession of your assets while going through the reorganization process.
Bankruptcies can seem complicated, but your attorney can help you navigate the bankruptcy and retain as many assets as possible. With the right help, you can come out with a better and more stable financial future.
Source: United States Courts, "Chapter 11 - Bankruptcy Basics," accessed March 02, 2017