|Updated: 4/13/2007 5:35 pm
||Published: 4/13/2007 5:35 pm
Chapter Eleven is one of four sections of the Federal Bankruptcy Code. Chapter Eleven was designed to help businesses in financial trouble restructure their organization and finances so they may continue to operate, rather than be liquidated. It also provides for the adoption of extended time payment plans for individual debtors who owe unsecured debts of less than 100,000 dollars and secured debts of less than 350,000 dollars. Individuals, partnerships, and corporations may be reorganized, rather than have their assets liquidated. In a Chapter Eleven proceeding, a reorganization plan is filed, either by the debtor, the creditors, or both. After the plan is submitted, it must be approved, or 'confirmed' by the court. Once that occurs, the debtor and creditors must go by the terms spelled out in the plan. During the bankruptcy proceedings, the individual or business may continue doing business as usual, as long as regular operating reports are provided. For more information about filing Chapter Eleven for a business or an individual, contact a bankruptcy attorney.