When individuals or businesses find themselves overwhelmed with debt, they may consider bankruptcy a way to get a fresh start. Bankruptcy is a legal process that can provide relief from creditors and help you get a new beginning. There are different types of bankruptcy, and each has its requirements.

This blog post will discuss Chapter 11 bankruptcy and the requirements to file.

What Is Chapter 11 Bankruptcy?

Chapter 11 bankruptcy is an option for businesses and individuals with significant debt. It allows debtors to reorganize their finances and repay their creditors over time.

Here’s how it works:

The debtor first proposes a plan of reorganization to their creditors. If the creditors approve the plan, it is then submitted to the bankruptcy court for approval.

Once the plan is approved, the debtor must make regular payments to their creditors according to its terms. Chapter 11 bankruptcy can be complex, so having an experienced bankruptcy lawyer in Easton Maryland, on your side is essential.

Attorneys can help in the following ways:

• Reviewing your financial situation and determining if Chapter 11 bankruptcy is the right option for you
• Drafting and filing the required bankruptcy documents
• Negotiating with creditors on your behalf
• Representing you at bankruptcy hearings
  Chapter 11 bankruptcy is the best choice for:
• Businesses that want to keep operating while they repay their debts
• Individuals with a lot of debt who want to protect their assets
• Debtors who are not eligible for Chapter 13 bankruptcy

Requirements to File Chapter 11 Bankruptcy

Some requirements for filing a chapter 11 bankruptcy are explained here:

1) You Should Be Engaged in Commercial Business Activities

To file for chapter 11 bankruptcy, you must be a business entity engaged in commercial activities. It includes businesses organized as sole proprietorships, limited liability companies, partnerships, and corporations. Non-profit organizations are also allowed to file for chapter 11 bankruptcy protection.

If your business is not engaged in commercial activities, you will not be eligible to file for chapter 11 bankruptcy.

2) You Must Have a Debts of More Than $394,725

There is no maximum debt limit for filing chapter 11 bankruptcy. However, you must have unsecured debts of more than $394,725 and secured debts of more than $394,725.

3) You Must Have a Regular Income

You must have a regular income to qualify for chapter 11 bankruptcy. It can come from wages, salaries, self-employment, investments, pensions, or other sources. The bankruptcy court will examine your past income to determine if you can repay your debts.

Conclusion

If you are looking for an expert chapter 11 bankruptcy lawyer in Palm Beach County, FL, contact RLC Lawyers, and we can help you with your case. We have the experience and knowledge to guide you through bankruptcy and get you the best possible outcome.