Bankruptcy: Chapter 11 Business Reorganization in Lansing, Michigan
The purpose of a chapter 11 bankruptcy is to allow an individual or business a limited amount of time free from creditor’s collection efforts to restructure its financial obligations so it may continue to operate in a normal fashion under a court approved plan of reorganization. Creditors of a business filing a chapter 11 vote on the repayment plan and the plan must be approved by the court. The advantage of chapter 11 is if a trustee is not appointed, the individual or business maintains control of its property during the bankruptcy and allow time to deal with creditors and to negotiate a plan of repayment.
Chapter 11 is normally for corporations and businesses but individuals may also file chapter 11. Chapter 11 is complicated there may be advantages to filing under a different chapter. An individual should consult with an attorney before making the decision to file chapter 11.
Related Article: Chapter 11 Reorganization Bankruptcy 101