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Chapter 11

This chapter of the United States Bankruptcy Code generally provides for reorganization of debts and usually involves a corporation or partnership. A reorganization plan will be filed in order to keep the business alive and pay creditors over a period time. Businesses or individuals can apply to seek relief.

For Large Business

Major corporations like General Motors, K-Mart, and United Airlines have all turned to Chapter 11 when they had financial problems. Chapter 11 allows for the reorganization of debts in order to keep the business open. Most Chapter 11 cases are filed by businesses and companies that are far from being household names. We can help your corporation navigate the complicatations of filing if you own or manage a large corporation.

For Small Business

Small businesses with less than $7.5 million in debts can reorganize debts over a 3 to 5 year period under the sub section 5 of Chapter 11 which became effective in February 2020. This will help small businesses survive and retain control of their business.

Chapter 7, for businesses, means the resolution of that business. All of its assets will be liquidated and the company will no longer exist. Chapter 11s are complicated and expensive and Chapter 11 sub chapter 5 is the middle ground between these two options.

  • 3-5 year payment plans available
  • plan starts within 90 days
  • less attorney fees

For Individual Consumer Debtors

Although Chapter 11s are normally used for businesses, Chapter 11 can be used by individual consumers who exceed the debt threshold allowed for Chapter 13. Currently, an individual cannot file Chapter 13 if he or she owes more than $383,175 in unsecured debt or $1,149,525 in secured debt. If you owe more than the Chapter 13 thresholds, a Chapter 11 might be right for you.

Under Chapter 11, an individual debtor can restructure personal finances through a plan of reorganization approved by the bankruptcy court. By reducing obligations and modifying payment terms, a Chapter 11 plan can help a debtor balance its income and expenses, if you exceed the limits to file Chapter 13 bankruptcy. Please contact our office to discuss your options at 205-982-3325.

Get Free Consultation

Curious if chapter 11 is right for your situation? It is completely free to find out what your options are.

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We know the hardest step can be making that first call for help. For over 20 years in Alabama, we have helped others just like you!

Phone number:
+1 205 982 3325


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2057 Valleydale Road, Suite 202
Pelham, AL 35244
Phone: (205) 982-3325
Fax: (205) 982-7070


1810 3rd Avenue, Suite 102
Jasper, AL 35501
Phone: (205) 522-7727


305 1st Avenue East
Oneonta, AL 35121
Phone: (205) 625-3325

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