Chapter 11 is the most complicated and expensive form of Bankruptcy.  It involves a significant amount of work by the attorney and client for the case to succeed.  Its primary purpose was to be used by large businesses seeking to reorganize their obligations and protect their assets.  Nonetheless, it remains a viable remedy for individuals with significant assets and liabilities.

Recently, the U.S. Bankruptcy Court promulgated certain form documents to streamline the process for individuals in need of reorganizing their financial obligations.  This development is a positive development for individuals who do not qualify for Chapter 13 because their debts are too high and who do not wish to relinquish control over their assets in Chapter 7.

Still, the process is fraught with uncertainties and remains much more costly than Chapter 7 or Chapter 13.  Before proceeding with Chapter 11, the client needs to understand such uncertainties, the risks involved and the potential benefits.  Competent strategies and clear communication of the facts in a Chapter 11 case are essential. Given our experience with Chapter 7, Chapter 11 and Chapter 13, prospective clients can be confident that we will properly advise them on which chapter is best for their situation and be there throughout the complex process.

Visit our Small Business Bankruptcy page for more information