CHAPTER 11 (Reorganization)
Chapter 11 allows businesses and individuals to reorganize and pay creditors through reorganization. Chapter 11 bankruptcy is available if a debtor has more debt than allowed under the Chapter 13 rules. Chapter 11 is also a possible option for someone who is land rich but cash poor. In a Chapter 11, there is no requirement that monthly mortgages be paid between filing and confirmation, as opposed to Chapter 13 where the next payment is due right after filing. This could mean in Chapter 11, that the debtor may not make a payment for six months or so. Deferring the payments allows the debtor to catch up on his debts, sell the property, or other options to improve his financial situation. In some Chapter 11 cases, the only payments could come from the sale of the property. Additionally, if there is the prospect of property that will be sold, attorney fees might be deferred and paid from the proceeds unlike Chapter 13 where I would require a payment up front and/or a payment plan.
Filing fees for Chapter 11 run $1039. As a Chapter 11 is complex and complicated, call for attorney fees.
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