Chapter 11 – Business and Individual Reorganizations
Chapter 11 is primarily designed for corporate reorganizations. It can be a very effective way to restructure coporate debt and reorganize business operations. However, the process and procedures for navigating through a Chapter 11 case can be time consuming and complicated. In 2019 Congress enacted the Small Business Reorganization Act (SBRA) by virtue of this new statute it has become easier for small businesses to reorganize through a bankruptcy filing. It is essential that anyone seeking protection under Chapter 11 of the bankruptcy code retain competent bankruptcy counsel.
Chapter 11 can be used by individual debtors as well. There are some situations where an individual debtor (or husband and wife debtors) are over the income limits for a Chapter 7 case and over the debt limits for a Chapter 13 filing and therefore should consider a Chapter 11 reorganization. These types of cases can be more costly and administratively burdensome but, under the right circumstances, the Debtor can obtain substantial relief.
Our firm is fully versed in Chapter 11 case filings and can advise potential filers of all the benefits and burdens anticipated in this type of case filing.