Bankruptcy is one of those things which everyone knows can happen, but nobody likes to think about — until debts pile up, and they have no choice.

One option for small business owners and individuals alike is Chapter 11 bankruptcy. Unlike a Chapter 7 bankruptcy, which liquidates your assets, Chapter 11 allows you to reorganize your debts in order to reduce their interest rates, lower and extend the payments and eventually repay.

  • Is a Chapter 11 bankruptcy best for me?

A Chapter 11 bankruptcy allows people or businesses to maintain some assets that are core to their operations while repaying debts over time. It’s most useful when you have a regular income and don’t want to file Chapter 7 but have too much debt to qualify for a Chapter 13 plan. Because there are a lot of complicated issues involved, it’s often best to make the decision about how to file with the advice of an experienced bankruptcy attorney.

  • How much is it to file for Chapter 11 bankruptcy?

The initial filing fee in the New Hampshire circuit of U.S. Bankruptcy Court is more than $1,700. This amount can dissuade some people from filing, but the fee emphasizes the importance of a first filing’s success in helping to alleviate applicants’ financial problems.

  • What is required to file under Chapter 11?

Personal applicants require documentation of their assets, liabilities and any legal actions taken by or against them. Companies that file for protection also must submit corporate resolutions, revenue projections, expenditure requirements and other vital documents to show the need for bankruptcy protection.

  • Do I need a lawyer to file for bankruptcy?

An attorney may not be required but it is a good decision to get legal representation when preparing to file for bankruptcy. A lawyer can identify the best ways for you to succeed with a first filing and save money while getting out from under your debt.