Chapter 11 is a reorganization plan for businesses and individuals with unsecured debts in excess of $336,900 and/or secured debts $1,010,650. In Chapter 11, the creditors vote whether to accept the plan, where in 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.