brand brand
Helping good people through bad times

When can individuals file for Chapter 11 bankruptcy?

Often when Chattanooga residents consider their bankruptcy options they elect to either pursue Chapter 7 bankruptcy or Chapter 13 bankruptcy. As readers of this debt relief and bankruptcy blog know, Chapter 7 bankruptcy allows a consumer to eliminate their debts through the liquidation of their assets; Chapter 13 bankruptcy allows consumers to reorganize their income and debts to create debt repayment plans.

Although there are other forms of bankruptcy that consumers may qualify for, these two types cover the vast majority of individual bankruptcy cases filed each year. However, some individuals choose to file for Chapter 11 bankruptcy if they do not qualify for either of the other two mentioned forms.

Chapter 7 bankruptcy and Chapter 13 bankruptcy have debt limit requirements that may prevent certain individuals from utilizing them. If a person has the potential to be highly compensated and their debts exceed those covered by Chapter 7 bankruptcy and Chapter 13 bankruptcy then they may be able to pursue debt relief through Chapter 11 bankruptcy. Readers are reminded that this post offers information only and no legal advice.

Businesses are often the beneficiaries of Chapter 11 protections but as mentioned in this post certain individuals may actually be able to use it to find much-needed debt relief. However, as with all other forms of bankruptcy any debtor who is considering filing for Chapter 11 bankruptcy should discuss their case with a knowledgeable attorney. A legal professional who understands the nuances of the various forms of bankruptcy can be an important resource to a person who needs help getting out from under their debts and finding solid financial ground for their future.

No Comments

Leave a comment
Comment Information

Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-954-7180
Phone: 423-624-4002
Fax: 423-624-0509
Chattanooga Law Office Map