Boston Bankruptcy Lawyer

Eligibility for Chapter 11 Bankruptcy

In some ways, Chapter 11 bankruptcy is very similar to Chapter 13 bankruptcy. Both are forms of debt reorganization in which the debtor follows a repayment plan that is negotiated with the creditors and approved by a bankruptcy court.

On the other hand, Chapter 11 bankruptcy is unique because it is an option available to both individuals and businesses. The majority of filers are businesses, however, because of the higher costs and greater complications involved in filing for Chapter 11 bankruptcy. For many businesses, the advice of an experienced Boston bankruptcy attorney is invaluable in successfully completing the process.

Eligibility Restrictions

Chapter 11 is a very flexible form of bankruptcy, and it provides debtors with a number of options. It is available to businesses in need of reorganization or for individuals who have too much debt to file for Chapter 13 protection. Chapter 11 bankruptcy also works for people who have too many assets for Chapter 13 bankruptcy.

Business conglomerates, insurance companies, and companies offering utility services to the general public are not allowed to file for Chapter 11 bankruptcy. These companies are required to redistribute and reassign funds to repay their creditors.

Beyond these few restrictions, there are not very many limits on who can file for Chapter 11 bankruptcy. The costs associated with Chapter 11 bankruptcy create something of a limit on potential petitioners.

Contact a Boston Bankruptcy Lawyer

If you have assets or debts that exceed the amounts allowed under Chapter 13 bankruptcy and would like to know more about Chapter 11 bankruptcy, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates at 1-800-975-5346 to discuss your options and eligibility today.