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March 15, 2008 |
A Chapter 11 bankruptcy is a federal court-ordered and supervised process in which a debtor obtains a discharge of some debts while retaining many assets. The debtor's assets may be liquidated, or sold, to pay off debts. Or, the debtor may reorganize his finances and obtain a discharge of the debts that are unsecured by collateral. Who Can File?The petitioner may be an individual, a corporation, sole proprietorship, or a partnership. Unlike Chapter 13 bankruptcy, there are no financial limits on the amount of debt. An individual debtor must complete a credit counseling course in the 180 days preceding filing. While primarily larger businesses file for Chapter 11 protection, a small business may do so as well if it meets the statutory requirements. |
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