A Chapter 11 bankruptcy is sometimes referred to as a “business reorganization” bankruptcy. However, it can also be filed by an individual whose debts exceed the limits of a Chapter 13 bankruptcy.  A Chapter 11 bankruptcy filing allows a business to continue operations while a repayment plan is developed.  Filing a Chapter 11 is very complex in nature, requiring a highly-experienced Chapter 11 bankruptcy attorney to assist in the process.


When a business files a Chapter 11 bankruptcy, the assumption is that the value of the business after reorganization will be considerably higher than an asset sale.  A Chapter 11 filing will allow a business seeking bankruptcy relief to continue to operate while reorganizing its financial affairs. This reorganization may include shedding of unprofitable operations or leases, refinancing, or attracting new investors.


Individuals whose debt exceeds the limit for a Chapter 13 may be able to file a Chapter 11 to restructure their debt. Due to the general decline in real estate values while mortgage debt has ballooned, a Chapter 11 is often the only option in California.

Filing Chapter 11 bankruptcy for either a business or an individual requires that a reorganization plan be submitted. Given the complexity of Chapter 11 filings, this is normally done by an experienced Chapter 11 attorney on behalf of the client. In-depth knowledge of the powerful reorganizational tools available to Chapter 11 debtors is extremely important—success or failure of the filing depends upon it.

An experienced Chapter 11 attorney can explain what is needed to file a reorganization, assess the advisability of such a filing, and describe how a Chapter 11 can help you reorganize your financial situation. Please contact us to discuss your eligibility for a Chapter 11 bankruptcy filing.