Filing Chapter 11 Bankruptcy in Florida
What Does Filing for Chapter 11 Bankruptcy Mean?
Chapter 11 bankruptcy for individuals is similar in many ways to Chapter 13, requiring that debt is repaid according to a monthly payment plan that spans three to five years. This form of bankruptcy protection can restructure debt, prevent home foreclosure or vehicle repossession, stop IRS collection procedures and halt harassment by creditors. Chapter 11 bankruptcy does not require the liquidation of assets and allows debtors to retain most assets, as long as payments are made according to an agreed upon monthly payment schedule. However, the process for filing is a complex one at best and requires the skills of an experienced lawyer.
What Types of Debt Are Not Dischargeable
- Student loan debt
- Alimony or child support debt
- Debts from certain types of taxes
- Certain types of court and attorney fees
How Do You Know if You Qualify for Chapter 11 Bankruptcy?
Chapter 11 bankruptcy lawyers will offer options available to South Florida residents that are interested in debt reorganization opportunities afforded under federal bankruptcy law, even if outstanding debts exceed the debt limits established for Chapter 13 bankruptcy. It is designed to protect both individuals and businesses facing serious financial challenges.
Advantages of Filing Chapter 11 Bankruptcy
- Can accommodate large corporations
- Businesses can stay open during the process
- Can protect you from aggressive collection action while the process is in progress
- Allows an individual to file when precluded from filing Chapter 13
Process Once You File Chapter 11 Bankruptcy
Chapter 11 bankruptcy is a very complicated process, lasting between three to five years. If you decide to proceed with filing Chapter 11, hiring a bankruptcy attorney is important. They will assist you in filing all required paperwork and documentation and will serve as the source of contact between you and your creditors. They will provide you with any information and strategies you need to navigate the difficult process towards Chapter 11 bankruptcy discharge.
How Your Repayment Plan is Determined When Filing Chapter 11 Bankruptcy
During Chapter 11 bankruptcy, debt is restructured into a monthly payment plan that spans three to five years and the amount you are required to pay is based on a calculation of your disposable income, after necessary and reasonable expenses are considered. Chapter 11 bankruptcy allows you to retain a greater portion of your assets than other forms of bankruptcy protection and offers increased flexibility and debt discharge opportunities.
How Does Chapter 11 Bankruptcy Affect Your Credit Report?
Filing Chapter 11 can be on your credit report for up to 10 years. Since you will be repaying debts, your credit will in most cases, improve.
How Can Klein Law Group Help
Due to the fact that Chapter 11 bankruptcy filing is a more cumbersome process than other bankruptcy options, we welcome individuals considering bankruptcy to give us a call to set up a free consultation with one of our experienced attorneys. During this no-fee, no-obligation meeting, we will discuss the unique aspects of your financial situation and provide you with the information you need to determine if Chapter 11 bankruptcy will help you get back on the road to financial health. We will also evaluate whether you qualify for protection under Chapter 13, an easier and less costly option that may be available to individuals interested in debt reorganization benefits afforded under federal bankruptcy law.
If you are seeking legal guidance for Chapter 11 bankruptcy, our attorneys can assist individuals and businesses that are struggling with debt. We understand that this is a difficult time, we can provide the help and support that you need in order to get the best outcome. To receive a free consultation from one of our knowledgeable and experienced bankruptcy attorneys, call (561) 353-2800.