Understanding Chapter 11 bankruptcy in Florida
On behalf of Bankruptcy Law Firm of Clare Casas on Wednesday, October 8, 2014.
A Chapter 11 bankruptcy case has many similarities to the Chapter 7 and Chapter 13 bankruptcy process. However, some debtors may assume the role of debtor in possession during proceedings. This means that the debtor will continue to control assets until a trustee is appointed, the case is converted to a Chapter 7 bankruptcy or the involved parties agree to a reorganization plan.
In some ways, filing a Chapter 11 case is much like filing other forms of bankruptcy. A debtor will file in the court closest to where he or she is domiciled or has permanent residency. There is a $1,167 fee to file in addition to a $500 miscellaneous administration fee, which may be paid in installments under certain circumstances. However, unlike Chapter 7 or 13 bankruptcy, a Chapter 11 filing may be an involuntary filing undertaken by creditors who meet certain conditions.
When the petition is filed, the debtor must produce evidence that a credit-counseling course was taken with 180 days of filing. Additionally, a debtor must produce evidence of income from an employer within the past 60 days as well as a schedule of monthly income. If a reorganization plan is approved, money to pay for that plan may come from any money that the debtor earns in the future.
Those who are overwhelmed by debt may wish to consider bankruptcy as a tool to create a new financial start. In bankruptcy, debts may be liquidated or reorganized before being discharged. This may enable those with mounting debt to get back on solid financial footing. Anyone who is considering bankruptcy may wish to hire a bankruptcy attorney for assistance. An attorney may be able to advise a client as to what type of bankruptcy is most appropriate.
Source: United States Court, "How Chapter 11 Works", October 08, 2014