Bankruptcy is never the first course of action an individual considers when addressing his or her mounting debt. Going bankrupt is typically a last resort used to restructure a large amount of debt that is no longer manageable, and to essentially wipe the financial slate clean. Even then, the process requires sacrifice, particularly when it comes to your credit scores, which suffer a very serious hit. Buying a home or car or obtaining any loan following a bankruptcy can be extremely difficult, and the only fix comes from the passage of time.
The Purpose of Chapter 11
Still, resorting to bankruptcy offers significant relief to individuals and business owners when filed properly with a trustworthy professional. Chapter 11 bankruptcy in particular is typically utilized by corporations or large business owners, but individuals who possess large assets and equally large debts also turn to Chapter 11 when they are looking for a fresh start.
Chapter 11 (usually referred to as Reorganization) allows the debtor to restructure his or her debts when he or she is not eligible for Chapter 7 or Chapter 13 bankruptcy. Chapter 11 is aimed to help reorganize very complex financial situations, and it begins with the filing of a petition with the bankruptcy court.
What Your Petition Requires
Your petition may be submitted as a voluntary petition or an involuntary petition. Voluntary means you, the debtor, file personally, while involuntary means creditors file for you. Either way, the petition must meet a number of requirements and standards as determined by the code and various court forms. Basic information you can expect to be required to provide in your petition will include everything from your name and social security number to the location of your principal assets and your potential plan (or intention for your plan).
A written disclosure statement must be filed alongside your plan of reorganization. This is a document that must include details regarding your assets, liabilities, and business affairs. The law requires that your plan’s contents consist of a classification of claims, and there must be specifications that describe how each class of claims will be treated under your plan. In addition to the petition, you will be responsible for various court fees, including case filing and miscellaneous administrative fees. These financial obligations must be met upon filing, or with the court’s permission, paid in a series of installments.
Chapter 11 Individual Bankruptcy Attorneys
Bankruptcy is never a do-it-yourself task, especially when it comes to the intricate process known as Chapter 11. To protect your rights and file a bankruptcy petition that offers you the most successful path to financial freedom, you need to work with a competent Cook County tax law attorney. Call the Law Offices of Eric G. Zelazny today at 708-888-2299 for a personal consultation.