CHAPTER 11 BANKRUPTCY

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What is a Chapter 11 bankruptcy? A Chapter 11 bankruptcy is frequently referred to as a "reorganization" bankruptcy. An individual cannot file under chapter 11 or any other chapter if, during the preceding 180 days, a prior bankruptcy petition was dismissed due to the debtor's willful failure to appear before the court or comply with orders of the court, or was voluntarily dismissed after creditors sought relief from the bankruptcy court to recover property upon which they hold liens. In addition, no individual may be a debtor under chapter 11 or any chapter of the Bankruptcy Code unless he or she has, within 180 days before filing, received credit counseling from an approved credit counseling agency either in an individual or group briefing. There are exceptions in emergency situations or where the U.S. trustee (or bankruptcy administrator) has determined that there are insufficient approved agencies to provide the required counseling. If a debt management plan is developed during required credit counseling, it must be filed with the court A Chapter 11 bankruptcy filing has no initial qualifying requirements in terms of the amount of debt that a debtor is required to owe or the type of entity that the debtor needs to be. However a Chapter 13 Debtor must file a Chapter 11 if debt is more than $336,900.00 in unsecured debt and $1,010,650.00 in secured debt. In essence, any entity that is qualified to file a Chapter 7 Bankruptcy may file a Chapter 11 Bankruptcy. Chapter 11 Bankruptcy was intentionally designed in this way.  Both a large corporation or an individual debtor owing just slightly in excess of the Chapter 13 debt limits may each file a Chapter 11 Bankruptcy. While bankruptcy is a viable option for many people and businesses confronted by excessive debt, the complexity of the bankruptcy laws as same were modified in 2005, make the use of qualified bankruptcy counsel a necessary option in most cases to assure that the complex regulations are followed and the desired result of the filing achieved. Keith, Shapiro & Ford has practiced before the Bankruptcy Courts of the Eastern and Southern Districts of New York for over 25 years. We offer free consultations  and welcome the opportunity to meet with you and to review the options which are available.

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While bankruptcy is a viable option for many people and businesses confronted by excessive debt, the complexity of the bankruptcy laws as same were modified in 2005, make the use of qualified bankruptcy counsel a necessary option in most cases to assure that the complex regulations are followed and the desired result of the filing achieved. Keith, Shapiro & Ford has practiced before the Bankruptcy Courts of the Eastern and Southern Districts of New York for over 25 years. We offer free consultations  and welcome the opportunity to meet with you and to review the options which are available.

Keith, Shapiro & Ford - (516)222-0200 
Offices in Nassau and Queens Counties