A Chapter 11 bankruptcy is similar to a Chapter 13 bankruptcy, except that there is no limit to how much you owe and it is often filed by businesses. Chapter 11 bankruptcy Ocala can be filed by individuals, too. In a traditional Chapter 11 bankruptcy, you start by negotiating with lenders for debtor-in-possession financing while preparing to file your petition to the bankruptcy court. You essentially seek permission from the court to become a debtor-in-possession and operate as that type of entity. This way, you can get enough time to restructure your finances and operations, and ultimately stabilize your business. You also need to settle your debts fairly and legally.
If you are an individual, you need to receive credit counseling within 180 days before filing your petition. Credit counseling aims to teach you about making intelligent and informed financial decisions and choices so you can reduce your chances of having to file another bankruptcy.
Your Attorney will file your Chapter 11 petition and attend the first-day hearing. The process will begin when the attorney submits the petition to the bankruptcy court. You need to include the list of your creditors and will need to pay the filing fee. Creditors won't be able to contact you when automatic stay goes in effect, as soon as you file for Chapter 11 bankruptcy in Ocala. You also need to attend the hearing with your attorney that will discuss the filing and consideration by the court of several motions pertaining to your activities. Motions may include debtor-in-possession financing and the appointing of counsel.
Take note that the petition must follow the format of Form 1 of the Official Forms by the Judicial Conference of the United States. Your Attorney will File with the court unless the court orders otherwise.
You need to include the following with your petition:
- Schedules of liabilities and assets
- Schedule of current income and expenditures
- Statement of financial affairs
- Schedule of executory contracts and unexpired leases
There are additional requirements if you are an individual or a legally married couple:
- Certificate of credit counseling and a copy of any debt repayment plan that was developed through counseling.
- Evidence of payment from employers (if any) that was received 60 days before filing the petition
- Monthly net income statement and any anticipated increase in expenses or income after filing
- Record of any interest that the debtor has in state or federal qualified education and tuition accounts
The couple may file a joint or individual petition. Chapter 11 bankruptcy is a very complex issue and working with an Ocala attorney here at The Law Offices of Justin McMurray, P.A can help make the process as easy as possible.
Seek legal counsel from a qualified Chapter 11 bankruptcy lawyers from The Law Offices Of Justin McMurray, P.A. We provide free consultation if you want to start making an informed decision about a Chapter 11 bankruptcy. Call us now at (888) 316-2131 or (352)-519-4299 to get started.