Can individuals or businesses file chapter 11 in Rochester Hills and areas of Michigan?
Chapter 11 is not the first choice for people who are filing for bankruptcy. Big businesses use chapter 11 to reorganize their finances. Individuals who have too much income or too many assets, or who have debts that fall outside the laws outlined for chapter 13 may want to consider chapter 11. Filing for chapter 11 means a business will—with help from a committee from the U.S. Trustee branch of the Justice Department—restructure finances and infrastructure to hopefully make more money. The committee draws up a plan that must be approved by the creditors, shareholders, and note holders. Such approval might be time consuming and complicated, and so chapter 11 is not usually the first solution for businesses filing for bankruptcy.
Related Questions
- What about individuals having mostly business debt, rather than personal debt who intent to file a Chapter 11 bankruptcy. Does the individual have to obtain credit counseling prior to filing bankruptcy?
- What common reasons do businesses or individuals file Chapter 11 Bankruptcy?
- What led Ritz to file Chapter 11 bankruptcy?
