Chapter 11 is a reorganization plan for businesses and individuals with unsecured debts in excess of $336,900 and/or secured debts of $1,010,650. In Chapter 11, the creditors vote whether to accept the plan, where in a Chapter 13, the plan must be approved if it meets the statutory rules, whether the creditors like it or not. Chapter 11 is usually used to reorganize a business, that wishes to continue to operate, in a Business Bankruptcy, rather than a personal bankruptcy.
Chapter 11 is usually a long, complicated, and expensive process, but if you have a profitable business that cannot meet its short term obligations, or has suffered a temporary setback and is now producing cash, then Chapter 11 may be the right form of bankruptcy to consider and use. Only a complete analysis by Bankruptcy Attorney Miles W. Rich can help you decide that.