Businesses wanting to remain in business choose Chapter 11 bankruptcy over Chapter 7 bankruptcy, as Chapter 7 bankruptcy contemplates the sale of equipment and assets which would be necessary to preserve the business’ value as a going concern.
Businesses that want to discharge debt choose Chapter 11 bankruptcy over Chapter 7 bankruptcy because Chapter 7 bankruptcy only grants individuals a discharge.
Businesses do not have the choice of filing for Chapter 13 bankruptcy at all.
People may choose Chapter 11 bankruptcy instead of Chapter 7 bankruptcy if they believe they can sell their nonexempt assets better than the Chapter 7 Trustee (see our Chapter 7 page for more details).
People may choose Chapter 11 bankruptcy instead of Chapter 13 bankruptcy because Chapter 13 bankruptcy requires regular income.
People may choose Chapter 11 bankruptcy instead of Chapter 13 bankruptcy because they live a high-end lifestyle. Chapter 13 bankruptcy imposes spending caps on households that can make a middle-class lifestyle almost impossible—especially in Southwest Florida.
Individuals in Chapter 11 bankruptcy (other than those under Subchapter V) may enter plans that spread out payments longer than Chapter 13 plans.
The attorneys at Dal Lago Law have substantial experience representing debtors and creditors in Chapter 11 bankruptcy; contact Dal Lago Law to determine if Chapter 11 bankruptcy is right for you.