With Chapter 11 bankruptcy, there is one objective in mind: to reorganize debts and assets. Unlike Chapter 7 where assets are liquidated to pay off creditors, Chapter 11 is arguably more forgiving. With Chapter 11, you don’t have to liquidate all of your assets to pay off your debts. You can work with your creditors to restructure payments towards your [...]
What is Chapter 11 Bankruptcy? Chapter 11 bankruptcy is most thought of as the commercial bankruptcy option for businesses, sole proprietors and partnerships. And it involves a reorganization of a debtor's business affairs, debts, and assets. While the debts are being restructured, they liquidate assets and restructure payment plans with creditors. Chapter 11 is also available to individuals. However, not [...]
In contrast to the liquidation approach, when you opt for a reorganization Chapter 11, you’re not selling off assets. You're just restructuring your debt in a way that’s more favorable to you. In many ways, a reorganization Chapter 11 “rhymes” with a Chapter 13. For instance, you get the ability to make payments to creditors. This tool is particularly useful for [...]
