Miami Chapter 11 Bankruptcy Lawyer
Florida Bankruptcy Lawyer Helping Clients in Miami File for Chapter 11 Bankruptcy
Whether you are considering bankruptcy as an individual or as a small business owner, you may be wondering if Chapter 11 bankruptcy is right for you. In most cases, Chapter 11 bankruptcy is a type of bankruptcy used by businesses that want to keep their doors open but want to work out a repayment plan with debtors over the course of several years. It is a type of reorganization bankruptcy similar to Chapter 13 bankruptcy.
At the same time, a small number of individuals may need to file for Chapter 11 bankruptcy based on their income or the amount of debt they owe. We want to tell you more about how Chapter 11 bankruptcy works and to encourage you to seek help from a dedicated Miami Chapter 11 bankruptcy lawyer at Nowack & Olson, PLLC.
What is Chapter 11 Bankruptcy in Miami?
Like with other types of bankruptcy, individuals and businesses initiate a Chapter 11 bankruptcy proceeding by filing a petition. As we mentioned above, Chapter 11 bankruptcy is a type of reorganization bankruptcy. This means that the debtor will develop a repayment plan in order to reorganize or restructure debts and to make payments over the course of a specific period of time. This period of time is known as the exclusivity period.
Who files for Chapter 11 bankruptcy? Typically, the following situations would lead an individual or a business to file for Chapter 11 bankruptcy:
- Business wants to remain open but wants to restructure debts;
- Individual wants to file for bankruptcy but does not qualify for Chapter 7 and has too much debt to qualify for Chapter 13; or
- Individual wants to file for bankruptcy and wants the benefits of a reorganization bankruptcy but has too much debt to qualify for Chapter 11.
Benefits of Filing for Miami Chapter 11 Bankruptcy Instead of Chapter 7 Bankruptcy
Businesses and individuals that qualify for Chapter 7 bankruptcy often elect to file for Chapter 11 bankruptcy instead. What are the benefits of filing for Chapter 11 bankruptcy? While you cannot have your debts discharged and get a fresh start as you can with a liquidation bankruptcy, the following are just some of the benefits of filing for Chapter 11 bankruptcy:
- Businesses can stay open while repaying creditors and getting back on track financially;
- Individuals can stop a foreclosure and catch up on a mortgage while restructuring debt; and
- Individuals can retain secured property, such as a house and an automobile, while repaying creditors over a period of time.
Requirements to File for Chapter 11 Bankruptcy in Miami, Florida
To file for Chapter 11 bankruptcy in the Miami area, debtors must pay a case filing fee of $1,167 and a miscellaneous administrative fee of $550. This type of bankruptcy is more expensive than Chapter 13 bankruptcy. In addition, the debtor must develop a repayment plan that the court confirms. Once the debtor completes the terms of the repayment plan, any remaining debts can be discharged.
Seek Advice from a Miami Chapter 11 Bankruptcy Lawyer
Businesses and individuals alike can benefit from Chapter 11 bankruptcy. If you have questions about filing for bankruptcy and your eligibility for Chapter 11, you should speak with a Miami Chapter 11 bankruptcy lawyer as soon as possible. Contact Nowack & Olson, PLLC for more information about how we can help with your case.