What You Need to Know About Chapter 11 Personal Bankruptcy in NYS

There are few things more stressful than being in debt. Unfortunately, many individuals throughout the United States are in serious debt as we speak, and if you cannot keep up with various bills, mortgage payments, and more, it is time to start seriously considering your legal options. Please continue reading and reach out to our knowledgeable New York bankruptcy attorney to learn more about Chapter 11 bankruptcy for individuals and how our firm can help you through every step of the legal process ahead. Here are some of the questions you may have:

How do I know if I will qualify for Chapter 11 bankruptcy?

In some instances where individuals owe more than the debt limits Chapter 13 bankruptcy allows, they may qualify for Chapter 11 bankruptcy. In New York State, if you have more than $419,275 in unsecured debt and $1,257,850 in secured debt, there is a very good chance that you will qualify for Chapter 11 bankruptcy. That being said, you must speak with an attorney who can evaluate your circumstances and determine the best strategy forward before you proceed.

How does the Chapter 11 bankruptcy process work?

If you file for Chapter 11 bankruptcy, you will have four months to create your reorganization plan. In certain cases, this timeframe may be extended, however, it is generally four months. You will then have to place each creditor into its own class. Certain debts are a priority when it comes to Chapter 11 bankruptcy, meaning you will have to pay off those debts first. Additionally, when you file Chapter 11 bankruptcy, it must always be in the best interest of the creditors, not the individual.

Chapter 11 bankruptcy has many similarities to Chapter 13 bankruptcy, however, the key difference between the two is that in Chapter 11 bankruptcy, creditors can vote on your reorganization plan. In many cases, all creditor classes will accept the plan, however, if they do not, at least one class of claims that is impaired under the plan will have to accept the plan for you to have a shot at having your case approved.

The Chapter 11 bankruptcy process is confusing, however, if you are someone who qualifies, it may be your best bet going forward. If you believe you are ready to file for bankruptcy, please do not hesitate to speak with our experienced Rockland County bankruptcy attorney today.

Contact our experienced New York firm

Bankruptcy, for many people, is a frightening endeavor. Fortunately, with the help of an experienced attorney, it does not have to be. If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options. We will have your back every step of the way.