Chapter 11 Filing

In Chapter 11 filing requirements all petitions and schedules must be accompanied by the filing fee, or individual debtors may file an application to pay the filing fee in installments. 

A Chapter 11 filing is usually an attempt to stay in business while a bankruptcy court supervises the reorganization of the company's contractual and debt obligations.   A Chapter 11 filing should not be undertaken lightly, and should be carefully thought out, especially as to the potential ultimate resolution of the matter. The court can grant complete or partial relief from most of the company's debts and its contracts, so that the company can make a fresh start.

One of the main elements of a Chapter 11 filing is a plan of reorganization, a business plan that allows the company to negotiate with its creditors to reorganize its financial obligations.  A Chapter 11 filing allows one to continue thier business operations while thier debt is restructured.

Goods received or services provided before the Chapter 11 filing generally are considered pre-petition. Goods received or services provided on or after the filing generally are considered post-petition.

The debtor in chapter 11 files a petition which includes a list of assets and liabilities, and a detailed statement of financial affairs. The debtor will typically act as his own trustee, called a "debtor in possession", and will remain in possession of all estate property.

Many corporate debtors can provide you with names and addresses of creditors in some type of electronic format. However, creditors are permitted to file involuntary bankruptcy cases against a debtor who is generally not paying his debts as they become due. These types of cases are much rarer.

A Chapter 11 filing is generally a voluntary action taken by a company to protect its ongoing business from financial claims while it continues operating its business.  A Chapter 11 filing includes an automatic stay that immediately freezes all claims against the company that predate the filing, stops all lawsuits against the company, and precludes creditors from exercising control over the company’s property.

Bankruptcy Code requires a meeting, typically held between 30 and 45 days after the Chapter 11 filing, between representatives of the company and individuals or businesses who believe the company owes them a financial debt.