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Do You Need To File Chapter 11 Bankruptcy?

By Susanne Robicsek, North Carolina Bankruptcy Attorney on Aug 30, 2007 in Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, General Bankruptcy Information, North Carolina

The answer to this question from most individuals is no. Chapter 11 is a complicated and expensive reorganization plan designed for corporations in financial trouble, or for individuals with over $336,900 in unsecured debt or more than $1,010,650 in secured debt. These amounts are good from April 2007, and they will be adjusted over time.

If you are an ordinary person with debts like a mortgage on a “normal” house, a regular car or two, and credit cards or personal loans, then you probably don’t need to consider Chapter 11. You probably need to look at Chapter 13, which is the reorganization that most people use, or you might be better in a Chapter 7 case.

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