Chapter 11 Bankruptcy Lawyer FAQ

Question 1

What is Chapter 11 bankruptcy?

Accepted Answer

Filing Chapter 11 of the U.S. Bankruptcy Code is most commonly a type of business bankruptcy. Corporations, sole proprietorships, partnerships, and individuals work with the court to develop a repayment plan that can eliminate or repay debts within a reasonable period of time.

Question 2

What is the Chapter 11 bankruptcy process?

Accepted Answer

Chapter 11 is the most complicated form of bankruptcy with several steps. These steps include: filing a petition, providing proof of credit counseling, the debtor continuing business operations, presenting a debt repayment plan, and making payments on the amount owed.

Question 3

How long does it take to complete Chapter 11 bankruptcy filings?

Accepted Answer

Chapter 11 cases take longer to resolve than other types of bankruptcy. That makes them costly in terms of legal fees and filing fees, which could place an additional burden on businesses that are already struggling.

Question 4

What is the difference between Chapter 13 and Chapter 7 bankruptcy?

Accepted Answer

A Chapter 7 bankruptcy is intended to wipe the slate as clean as possible. Ideally, that means all debts are discharged. A Chapter 13 bankruptcy can also erase most debt. It’s referred to as a repayment plan. This can be a good option for people who need to stop a foreclosure and work out a modification of their mortgage loan. Debtors who file for Chapter 13 also can keep all of their property, including their non-exempt assets that could potentially be sold under Chapter 7.

Question 5

What is Chapter 7 bankruptcy?

Accepted Answer

If you meet the eligibility requirements, filing under Chapter 7 should mean a total discharge of your debt. That means that expenses such as credit card bills, medical expenses, personal loan debts and other financial obligations simply go away. You don’t have to pay them back.

Question 6

Which type of bankruptcy is right for me?

Accepted Answer

Only an analysis of your particular situation and your goals can properly answer that. If you’re not sure if bankruptcy or which Chapter in bankruptcy is your best option, reach out to an attorney who specializes in bankruptcy cases. There’s no question that filing for bankruptcy is an emotional decision, particularly when it’s tied to a marital conflict or death in the family. You need to talk to a caring bankruptcy attorney who can help you get the debt relief that you need.

Question 7

How Often Can You File for Bankruptcy in NY?

Accepted Answer

The road to financial health can get rocky at times. Some people who file for a Chapter 7 or Chapter 13 bankruptcy may run into circumstances that lead them to file another bankruptcy – maybe just a few years or even months after the first one. The good news is that, unless a court bars you from doing so, you typically can file for bankruptcy as often as you need in New York.

Question 8

How Much Time Until You Are Entitled to a Discharge?

Accepted Answer

Barring a court order, you can file multiple Chapter 7 or Chapter 13 bankruptcies. But if your debts were discharged in the prior bankruptcy, you will need to wait until you can get a discharge in the current bankruptcy case. Some people call it the "2-4-8 Rule." Here's how it works: 2 – If you received a discharge in a prior Chapter 13 bankruptcy, you must wait two years from that filing date until you can get a discharge in a second Chapter 13 bankruptcy. 4 – If you received a discharge in a prior Chapter 7 bankruptcy, you must wait four years from that filing date until you can get a discharge in a Chapter 13 bankruptcy. 8 – If you receive a discharge in a prior Chapter 7 bankruptcy, you must wait eight years from that filing date until you can get a discharge in a subsequent Chapter 7 bankruptcy.

Question 9

What If Your Prior Bankruptcy Was Not Discharged?

Accepted Answer

The above rules deal with what happens if your bankruptcy results in discharge. If a U.S. Bankruptcy Court judge dismisses your bankruptcy action with prejudice, then the judge may also restrict when you can file again. For instance, if a judge finds that you ignored court orders or tried to abuse the United States bankruptcy system, the judge may bar you from filing a subsequent bankruptcy for 180 days or longer.

Question 10

Can You Get an Automatic Stay for Your Bankruptcy Claim?

Accepted Answer

A bankruptcy filing can provide immediate relief. As soon as you file, an automatic stay takes effect. The stay prohibits creditors from bothering you. Collections must stop. You can also put a halt to foreclosure activities. However, if you filed a prior bankruptcy, you may not get that automatic stay while your case is active. If the judge dismissed your bankruptcy, then you will not get the normal automatic stay for any bankruptcy that you file within one year after the date of that dismissal. Instead, you will get only a 30-day automatic stay. If you had two bankruptcies dismissed within the previous year, you would get no stay.

Question 11

Can my Chapter 11 filing be converted to a Chapter 7 bankruptcy filing?

Accepted Answer

Voluntary Chapter 11 bankruptcy cases may be converted to a Chapter 7 bankruptcy (liquidation). This happens when selling off assets may be the best way to reduce debt obligations or a plan proves ultimately infeasible.

Chapter 7 Bankruptcy Lawyer in White Plains, NY

What is Chapter 7 Bankruptcy?

What’s the Difference Between Chapter 7 and Chapter 13 Bankruptcy in New York?

Which Type of Bankruptcy Is Right for Me in New York?

What Can Our White Plains Chapter 7 Bankruptcy Lawyers Do for You?

Michael H. Schwartz, P.C.