Chapter 11 bankruptcy
Chapter 11 bankruptcy
DISCHARGING DEBT THROUGH LIQUIDATION
Chapter 11 is a less common form of bankruptcy which can be filed on a personal level or for a business or corporation. This form of bankruptcy is similar to Chapter 13, as it works simultaneously to restructure your debt and prevent collection actions. Whether you are facing the loss of your home or simply want to get a handle on your debt, filing for Chapter 11 bankruptcy can help you structure a payment plan which is manageable for you and your family.
Understanding Non-Dischargeable Debt in Bankruptcy
Many people have misconceptions about Chapter 11 bankruptcy, including that it can help you discharge all of your debt. Before choosing to file for Chapter 11, it is important that you understand what this chapter of bankruptcy can do and what it cannot. We want to ensure that you choose the best option for yourself and for your business.
The following types of debt are not dischargeable in Chapter 11:
Certain tax debt;
Child support or alimony debt;
Student loan debt;
Advantages of Filing for Chapter 11
Many people have misconceptions about Chapter 11 bankruptcy, including that it can help you discharge all of your debt. Before choosing to file for Chapter 11, it is important that you understand what this chapter of bankruptcy can do and what it cannot. We want to ensure that you choose the best option for yourself and for your business.
The benefits of filing for Chapter 11 bankruptcy include:
Prevents collection actions;
Viable option for large corporations;
Helps your business stay open while filing;