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Personal Chapter 11 Bankruptcy Illinois

Chapter 11 bankruptcy isn’t usually the first choice for people with financial problems who want to file for bankruptcy.

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Chapter 11 bankruptcy isn’t usually the first choice for people with financial problems who want to file for bankruptcy. Chapter 11 is same kind of bankruptcy used by major corporations to reorganize. The primary reason that people file for Chapter 11 is that they have too much income and assets or they have debts that fall outside the statutory limits for filing a Chapter 13 Bankruptcy. Chapter 11 Bankruptcy protection is an option available to individuals, but is seldom used by them. Chapter 11 allows qualified individuals (and businesses) to reorganize and repay their debts over time. A person must file a Chapter 11 if they have debts that total more than $336,900.00 in unsecured debt and $1,001,650.00. In certain cases owing just slightly in excess of the Chapter 13 debt limits may force the person to file a Chapter 11 Bankruptcy.

Although everyone’s situation is different, some of the most common issues that motivate a person to file for personal Chapter 11 Bankruptcy include:

Divorce

Lawsuits

Medical Illness

Loss of Income

Failure in Business

Loss of Professional License

Commercial or Residential Foreclosure

Loss of Contract

Tax Problems

Most individuals who file a Chapter 11 are professionals or people with a high net worth who make an above average income or has previously made a significant amount of income. Personal Chapter 11 Bankruptcies are filed because the person filing experiences a setback or downturn in their income. In turn, they need breathing room to reorganize their finances and get their finances back on track.
There are all types of professionals and high net worth Chapter 11 Bankruptcy filers which include:

Doctors

Lawyers

Contractors

Dentists

Actors

Entertainers

Financial Planners

Entrepreneurs

Business Executives,

Real Estate Developers

Professional Athletes

Numerous high income professionals, as well as many stars, celebrities, and famous people have filed for Chapter 11 Bankruptcy. Oftentimes, personal Chapter 11 filings are motivated by a divorce, tax problems, lawsuits, medical illness, or a decrease in professional income that suddenly leaves the person with the inability to maintain their current financial obligations. When these types of problems become to overwhelming to address, the filing of a Chapter 11 Bankruptcy may be the most responsible way to address financial problems. Chapter 11 Bankruptcy can also be a way to buy time, reorganize, provide a breathing spell, or propose a plan to realistically repay debts over time, and of course protecting assets as allowed by law.

Although a Chapter 11 Bankruptcy can be a way for professionals and high net worth individuals to deal with debt, it does bring with it a number of legal requirements and responsibilities that should be considered. Anyone considering a personal Chapter 11 Bankruptcy filing should seek competent legal advice from an experienced bankruptcy lawyer who can inform them of the requirements, procedures, as well as the potential outcomes of filing for Chapter 11 Bankruptcy.

Most professionals are in a way “business owners” so their businesses and personal finances are often intermingled and intertwined. This close connection makes it extremely important to determine the potential impact on their business, profession, or career as well as the possible challenges that may be faced throughout the pendency of a Chapter 11 case. A Chapter 11 whether it is for an individual or a business is the most complex and time-consuming of all types of bankruptcy proceedings. Even though Chapter 11 filings make up less than 5 percent of all bankruptcy cases filed, it’s estimated that as much as 90 percent of all time expended by the Bankruptcy Courts involve Chapter 11 bankruptcy proceedings.

Some Chapter 11 matters include relief from stay motions, the use or sale of property which can include the use of cash collateral, assumption or rejection of contracts, leases, and the obtaining of credit by the bankruptcy estate. These issues must be dealt with independently, however the resolution of each individual issue often involves one or more evidentiary hearings, and one or more of these issues can affect the outcome of the others. A resolution to any or all of the above bankruptcy issues may required at the beginning of a Chapter 11 case. The resolution of one or more of these critical issues may be key to determining whether a Chapter 11 bankruptcy proceeding will be given an opportunity for a potentially successful outcome or end up as a Chapter 7 liquidation.

In the context of a personal Chapter 11 Bankruptcy filing, if you add to the mix an IRS tax problem, a divorce, a lawsuit, a slump in a profession or career, or a foreclosure proceeding, it can become quite complicated. Since Chapter 11 bankruptcies can be quite complex and time consuming, anyone considering filing for bankruptcy relief under Chapter 11 must utilize an attorney, and who has experience in handling Chapter 11 Bankruptcy cases.

If you need debt relief and want to know your options in Chapter 11 Bankruptcy, contact an experienced bankruptcy lawyer in your area to get the facts.

Copyright: Copyright © 2008 RJ Atkinson LLP – Attorneys At Law

About the Author:
Rogena Jan Atkinson of The Law Offices of RJ Atkinson,LLP, (rjabankruptcy.com) is a bankruptcy lawyer & foreclosure attorney who has stopped thousands of foreclosures with bankruptcy. Visit www.rjabankruptcy.com to learn more about foreclosure and bankruptcy.

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Chicago, IL

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Business Services	Fashion	Industrial Goods & Services	Retail & Consumer Services
Career	Financial Services	Insurance	Software
Cars	Food & Beverage	Internet	Technology
Computer Hardware	Franchise	Legal	Telecommunications
Construction	Health	Miscellaneous	Trade Shows
Education	Holidays	Nightlife	Travel
Entertainment	Home Appliances	Online Database	Weddings
Environmental	Home Electronics	Pets	World History