The bankruptcy code of the United States is separated into many different chapters. Each chapter is then separated into different subsections. If you manage a business that has been overleveraged and cannot cover its debts, you might end up filing for bankruptcy. However, there are some conditions to each different kind of bankruptcy. If you want to keep your business or if you are filing as an individual, you’ll likely choose chapter 11 personal bankruptcy. This type of bankruptcy is often used for businesses, but it can also be used for individuals. In that case, it is great for small businesses as well. If your business is a pass-through or a sole proprietorship, your personal finances and business finances will be combined. That makes it perfect for chapter 11 cases.
Reorganization Cases
Chapter 11 personal bankruptcy in New Haven, IN is a reorganization type of bankruptcy, which means you will sell off assets that are not crucial to the survival of your business. It means that your debts will be organized into lump sum payments that you will then pay out to different creditors. While it might seem dramatic to sell off parts of your business, chapter 11 bankruptcy is about the survival of your business or of your personal finances. You might have to take some drastic steps with this type of bankruptcy.
You should contact Fred Wehrwin, P.C. if you think you need to file for bankruptcy. He can walk you through many elements of filing.
Filing Fees
Chapter 11 personal bankruptcy has some filing fees that you have to account for. Oftentimes, these fees will be lumped into your expenses when you are reorganizing your debts. You need to make sure you account for those. You can often pay those fees off by reorganizing. You also might need to put your affairs in the trust of a trustee that might cost money as well. You can also connect them on Facebook.
