A complex type of bankruptcy usually filed by businesses that wish to restructure their debts.
A type of bankruptcy commonly referred to as a "business reorganization." However, it is available to individual debtors and can include personal debts. It is often used by debtors who have unsecured debts exceeding $100,000 and thus are ineligible for Chapter 13. Close
Payment Plan – A court petition that allows the borrower to reorganize his debts and pay his creditors a stipulated amount so that the business can continue.
Under Chapter 11 bankruptcy a company is protected from creditors while it restructures its business, usually by downsizing and narrowing focus.
Chapter 11 addresses reorganization for both individual and business debtors. The purpose of Chapter 11 is to rehabilitate a business as a going concern or reorganize an individual's finances.
Normally used for corporations, Chapter 11 can be used by consumers in certain rare cases involving extremely large debt. However, Chapter 13 is simpler and provides better protection for most consumers.
An individual may file under this chapter but it is used primarily for business debt. Like a chapter 13, this chapter halts collection activities an allows the business debtor to restructure their payments. This applies to business debt that exceeds $250,000 in unsecured debt and $750,000 in secured debt. Total debt may not exceed $2,000,000.00
Chapter of the Bankruptcy Code that is usually used for the reorganization of a financially troubled business. Used as an alternative to liquidation under Chapter 7. The U.S. Supreme Court has held that an individual may also use Chapter 11.