Big Challenges, Smarter Solutions
Chapter 11 Bankruptcy Explained Clearly
Chapter 11 bankruptcy helps individuals and businesses reorganize debt while keeping operations going. It's a powerful tool—but one that needs the right guide. We break it down into plain English and stick with you every step of the way.
Chapter 11 Bankruptcy FAQs
Who qualifies for Chapter 11 bankruptcy?
Chapter 11 is typically used by businesses but can also work for individuals who have too much debt or income to qualify for Chapter 7 or Chapter 13. It's ideal when you have assets to protect and need time to restructure obligations without losing control.
How long does Chapter 11 take?
Chapter 11 is more complex than Chapter 7 or 13 and typically takes anywhere from six months to two years. The timeline depends on the size of debts, the number of creditors, and how long negotiations take to finalize an approved plan.
Will I have to close my business during Chapter 11?
Not necessarily. One of the key benefits of Chapter 11 is that you generally stay in business. You continue operations while reorganizing debt—offering a path toward stability and future growth under court protection.
How is Chapter 11 different from Chapter 13?
Chapter 13 is simpler and limited to individuals with lower debt thresholds. Chapter 11 has no debt limit and is often used by businesses or individuals with significant assets and liabilities. It offers greater flexibility but involves stricter court oversight.
What happens if the repayment plan isn’t approved?
If the court or creditors reject your first proposed plan, you usually get a chance to modify and resubmit. Having an experienced attorney matters here—we help create a plan that meets legal requirements and stands a strong chance of approval.