If you are curious about filing for bankruptcy and you have questions as to how you should file. Chapter 11 is listed in the bankruptcy code as providing for reorganization. This will usually involve a partnership or corporation. A debtor with a chapter 11 filing will put together a plan for reorganization to help keep their business alive and will pay the creditors over time. Either individuals or people involved in business are able to seek relief by way of chapter 11.
The way that a chapter 11 works is that it will start with the filing of a petition through bankruptcy court that serves the area where the debtor lives. This may be either a voluntary petition that is filed by the debtor, or it could be an involuntary petition filed by creditors meeting certain requirements.
A chapter 11 case will usually be filed by a partnership, corporation or a limited liability company. Individuals may also file under the chapter 11 if they happen to have too much in the way of debt or income to be able to qualify under either a chapter 7 or 13. Many individual debtors will choose to go with a chapter 7 or 13 to try to avoid the cost, time and any risks involved with a chapter 11 proceeding.
You will also find that there is no limit on the duration for a chapter 11 case Some of them might wrap up within a few months time, but there are cases that will take anywhere between six months up to two years to come to a complete close. In many instances, no trustee will be appointed and the debtor can keep operating their business. If you have any questions as to whether or not this is the best choice for you, it is always a good idea to consult a bankruptcy attorney.