Types of Bankruptcy: Chapter 11
In the United States, bankruptcy laws help protect businesses and individuals who are no longer able to pay their creditors. There are several different bankruptcy categories based on your assets and the way you want to handle your debt. Chapter 11 bankruptcy is for businesses and individuals, usually with a large amount of assets, who want the chance to reorganize their company or property in order to pay off their debt.
If you feel cornered by creditors but think that you could restructure and get back on your feet, filing for Chapter 11 bankruptcy could be for you. Call the Milwaukee bankruptcy law attorneys of the DeLadurantey Law Office today at 414-377-0518 for more information.
Chapter 11 bankruptcy may be filed by an individual, business, or creditor on behalf of the party that owes money. As with most other types of bankruptcy, a person typically cannot file for chapter eleven unless they have received credit counseling in the past 180 days from an approved credit counseling service.
The beauty of Chapter 11 bankruptcy is that it allows for a “debtor in possession.” This means that the original owner of the business or assets still has a modicum of control, but he or she must follow governmental procedures for leading the company or working with the property. Additionally, a debtor in possession may be subjected to governmental oversight.
Responsibilities of Debtors in Possession
If the court grants you the status of debtor in possession according to Chapter 11 bankruptcy, you may have to fulfill the following duties:
- Filing reports about the property
- Employing lawyers, auditors, appraisers, etc. to help with bankruptcy
- Filing tax returns and other income reports
If you are considering filing for Chapter 11 bankruptcy, legal help is highly beneficial with navigating the bankruptcy code of law. For experienced and efficient bankruptcy lawyers, contact the Milwaukee area DeLadurantey Law Office today at 414-377-0518.