Boston Bankruptcy Lawyers

The Chapter 11 Bankruptcy Process

Filing for Chapter 11 bankruptcy starts with filing a petition with the appropriate bankruptcy court. Bankruptcy courts are part of the federal court system, but they are separate from the regular district and appeals courts. Once the petition has been filed, the court is required to charge a $1000 filing fee plus a $39 miscellaneous fee.

Along with the petition for bankruptcy, a written disclosure statement and a plan of reorganization must also be filed with the court. The disclosure statement must contain information on the debtor’s assets, liabilities, and business affairs.

The amount of information required on a bankruptcy petition is determined by judicial discretion and the circumstances of the case. In small business cases, the debtor may not need to file a separate disclosure statement if the court decides that there is enough information in the repayment plan.

The Repayment Plan

The Chapter 11 repayment plan must classify the different claims that creditors have and specify how each class of claims will be addressed. Creditors whose contractual rights are being modified or who will receive less than the full value of their claims get to vote on the plan by ballot.

Once the disclosure statement has been approved by the court and the ballots are collected and tallied, the court will conduct a confirmation hearing to finalize the terms of the bankruptcy process. Once the plan is confirmed, some debts are discharged and the plan goes into effect.

Contact a Boston Bankruptcy Lawyer

For more information on the Chapter 11 bankruptcy process, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates at 1-800-975-5346 today.