One of the most complex forms of bankruptcy is Chapter 11 bankruptcy. Most of the time, businesses utilize Chapter 11 bankruptcy, but consumers and individuals can use it too. This form of bankruptcy allows for you to restructure your debt and pay it back over a set amount of time. To file for bankruptcy, you must file your petition with the bankruptcy court.
Chapter 11 tends to be appealing because it allows for individuals to reorganize and create a future plan. In order to qualify, you have to make sure that you do not have debts over two and a half million dollars. You also cannot focus on owning or managing real property.
If you are a debtor, then you will have to use a variety of different forms, according to MagnifyMoney.com. You will have to file the 200-series, a series that begins with the form 201. This is a voluntary petition for businesses. Next, in the process, you have to make sure that you have a list of all addresses and names of your creditors. You will also have to file periodic reports with the SEC.
Once you file the first form, you have two weeks to complete the rest of the forms. The types of forms that you may have to fill out include assets and liabilities, unsecured claims, real and personal property, assets and liabilities, statement of financial affairs and more that you can locate.
The above article is meant to inform on the basics of filing for Chapter 11 Bankruptcy. This is for educational purposes only and is not to be considered legal advice.