Individual Chapter 11
Law Firm Experienced in Helping Individuals Reorganize Their Finances Under Chapter 11
Finding creative solutions to financial difficulties
Many people are unaware that a Chapter 11 bankruptcy filing is available to individuals. Most Chapter 11 cases involve corporate restructures, but the process can be used for a personal reorganization, as well. Few attorneys successfully handle individual Chapter 11 filings, but at Leiderman Shelomith Alexander + Somodevilla, PLLC, we are fully equipped to assist you. Let us help you take advantage of a more meaningful debt restructuring as a consumer.
Individual Chapter 11 cases
If you have too much disposable income after paying your necessary expenses and you are unable to pass the means test, you may be considered ineligible to file a Chapter 7 bankruptcy. If you have borrowed a large amount of money, the Chapter 13 debt limits may not be sufficient. A Chapter 11 filing provides the best option for this type of consumer.
How Chapter 11 can help you
A Chapter 11 case is designed to handle even the most complex problems of an individual with a large amount of debt. Below are several benefits a consumer can get in a Chapter 11:
- The means test does not apply to individual debtors in Chapter 11 cases, so any individual is eligible to file a Chapter 11 bankruptcy.
- In Chapter 11, an individual debtor can modify secured debts, such as car loans and certain mortgages. There is a time restriction in Chapter 13 cases where the debtor must have financed a vehicle for more than two and a half years before the loan can be reduced to the value of the vehicle. In Chapter 11 cases, there is no time restriction.
- There is no strict commitment period in Chapter 11 cases (as there is in Chapter 13) for the length of a repayment plan, so a debtor is not limited to either a 3 year repayment plan or a 5 year repayment plan – plans may last shorter or longer.
- In most cases, an individual debtor in a Chapter 11 bankruptcy remains in possession of his/her assets, and will continue to manage his/her finances under the supervision of the court. This allows the individual debtor the opportunity to improve his/her financial situation, which will, in turn, benefit his/her creditors.
- Less disruption in the calculation of plan payments for individual debtors. An individual with income in excess of the median for the state does not have to apply the Internal Revenue Service standards in calculating available income. This allows a debtor to propose a repayment plan that more closely conforms to his/her actual budget than in a Chapter 13.
- Debtors can design Chapter 11 plans that classify creditors to allow for easier confirmation within reasonable limits.
Why you need an individual Chapter 11 attorney
Bankruptcy laws are very technical and you are required to complete many official forms under penalty of perjury. While you are permitted to file your bankruptcy case without an attorney, it is extremely difficult to do so successfully. The Chapter 11 process is considered the most complex type of bankruptcy filing. Our bankruptcy attorneys provide individuals who need relief under Chapter 11 with cutting edge knowledge, backed by vast experience, so that you can restructure your debt and move forward with your life.
Confer with an individual Chapter 11 attorney to discuss your finances
Leiderman Shelomith Alexander + Somodevilla, PLLC has two offices conveniently located in Miami and Fort Lauderdale, Florida. We serve all of the Southern District of Florida including Broward, Miami-Dade, Highlands, Indian River, Martin, Monroe, Okeechobee, Palm Beach, and St. Lucie counties. Contact us by calling (954) 920-5355 or online to schedule a no-cost initial consultation to discuss how an individual Chapter 11 bankruptcy could help you.