For most people reading this website, Chapter 11 bankruptcy will not be the type of bankruptcy you will
Chapter 11 is a reorganization plan, that provides repayment different from the contracted terms.
It can lower the balances paid on some loans, can alter the time to pay, and reorganize other contractual terms.
Chapter 11 bankruptcy is a repayment plan for corporations, or for individuals who owe more that the Chapter 13 debt limits.
As of 2012 under § 109(e) the debt limits for eligibility for Chapter 13 was unsecured liquidated debt
under $360,475.00; and secured liquidated debt under $1,081,400.00.
(The debts adjust from time to time so if
you are close to the limits above, current numbers may have changed.)
If you are a consumer of modest means, middle
class, or an 'ordinary' person, more than likely what you are interested in is a Chapter 13 reorganization bankruptcy.
Chapter 13 is similar to Chapter 11, but a lot easier & faster.
Chapter 13 is for individuals,
consumers and small business sole owners. It requires much less paperwork, moves faster and has lower legal
The most common reason for Chapter 13 filing is that it helps people pay debt if they have the means to
do so, allows them to keep property that they are at risk of losing without bankruptcy protection, or have secured debts or
taxes that they need time to pay or catch up.