You are considering filing bankruptcy and
you have heard of Chapter 11. Should I file a Chapter 11? My name is Andy Forman and I’m
a Consumer and Business Bankruptcy Lawyer in Tampa, Florida and I help give advice to
people day in and day out about which bankruptcy they should file. Chapter 11 is typically
a corporate reorganization. It can be used by individuals whose debt exceeds the allowable
amounts of Chapter 13 but it is usually not very effective for individuals for a host
of complex reasons. In Chapter 11 the corporation identifies the creditors and groups them in
what are called classes. The Chapter 11 debtor files a disclosure statement which identifies
the history of the debtor and provides financial information and it also provides for a plan
of reorganization and in that plan there are the classes that we have identified and each
class is treated differently. Some classes are taxes, secured creditors and priority
claims. Each of those classes are addressed and dealt with in the plan of reorganization.
At some point your creditors will vote on that plan and either approve it or reject
it. You’ll need to seek legal counsel to get good advice in this area. My name is Andy
Forman. Good luck with your Chapter 11 bankruptcy.