We are a "debt relief agency" — we help people
file for Bankruptcy relief under the Bankruptcy Code.

Chapter 11 is a reorganization bankruptcy that is typically used by corporations to restructure their debt or liquidate their assets. Individuals are eligible for Chapter Eleven although Chapters Thirteen and Seven are much more frequently used by them to accomplish their objectives within Bankruptcy. Chapter 11 is significantly more expensive and time consuming for the Debtor. For instance, attorney fee retainers can start at about five thousand to ten thousand dollars for very small cases, plus the $830 filing fee.

A Chapter Eleven may have many benefits. Among them:

• A business may restructure secured obligations or simply eliminate them.
• Unsecured debts may be paid based on a new payment plan at any amount from zero to one hundred percent.
• Leases may be rejected or kept.
• Priority debts like the IRS may be restructured and paid over six years from the date of assessment.

Basically, in many Chapter Elevens the legal issues are very complex. A business may not be able to use receivables and current cash reserves to continue running the business without permission from the Court or Creditor involved. Since voting is required to confirm most plans, complex rules exist regarding formation of "classes" to try and achieve a successful confirmation vote. Many Chapter Eleven plans have to overcome objections by the United States Trustee of feasibility, since all plans have to make financial sense given past business troubles.