Chapter 11 bankruptcy is something that is
available to individuals and partnerships as well as larger
corporations. This is a form of bankruptcy in which you will be ale
to reorganize your debts. It is the choice of most large
corporations because there is no maximum amount that can be owed. In
Chapter 13 on the other hand you can only owe so much if you want to
make use of it, not so with Chapter 11 bankruptcy.
You will not have to liquidate your assets when
it is Chapter 11 bankruptcy that you are filing for. You will still
be able to stay in control of your business for as long as you
follow the plan that you set out on. You will however be watched for
the safety of the creditors. In fact you will become a fiduciary for
your creditors and as long as you do a good job there will not be a
problem. If however you do not then a trustee may take over for
you.
When you file for Chapter 11 bankruptcy, the
trustee will choose a committee out of the creditors and this is the
board with which you will be dealing with on a regular basis. You
will have to answer to them in some respects. It is through them
that you will find terms that everyone can agree on when it comes to
paying off your debt. It is your creditors who will either accept or
deny your strategy of repayment. If they find your terms
unacceptable then it is back to the drawing board. If you cannot
seem to get them to agree with you there are some statutory test
that you can use in order to get your particular plan
confirmed.
Chapter 11 bankruptcy is a popular one because
it is so flexible and easy to work with. It is not a cheap way to go
and it can be hard to file for Chapter 11 bankruptcy and succeed in
this endeavor.
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