In this article in our Arizona Bankruptcy Essentials series, I’ll discuss the lynchpins of the Chapter 11 Reorganization bankruptcy. Most people don’t think of Chapter 11 as a form of consumer bankruptcy. But if you happen to be an individual with substantial assets and minimal cash flow, then you may be the perfect candidate for debt relief under Chapter 11 of the U.S. Bankruptcy Code.
That’s right, individual debtors and business people can seek relief under Chapter 11 along with more formal business organizations. When you’re an individual debtor with significant equity in real property and minimal income, or no income, then you need to read this article and take a closer look at Chapter 11. And for those individual farmers who don’t qualify for debt relief under Chapter 12’s Family Farmer Reorganization, the Chapter 11 could be your bankruptcy solution.
1. Who Is Eligible for Chapter 11 Bankruptcy Protection?
The first question to ask is whether you qualify for Chapter 11 protection. The Chapter 11 is typically thought of as a commercial or business bankruptcy, but it is less exclusive than you may think. An individual proprietor, partnership, limited liability company, or corporation may file for bankruptcy under Chapter 11. As more people recognize the benefits of Chapter 11, the number of individuals filing under this chapter has steadily increased. And as with Chapters 7 and 13, husbands and wives may file jointly or separately under Chapter 11...
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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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