So you want a chapter 11 bankruptcy definition to help you determine if this is the right option for you in your current financial predicament?
Very simply, chapter 11 is probably the best form of bankruptcy you can declare for, because you aren’t required to give up any of your personal belongings, and most importantly, your business can continue to run.
As opposed to chapter 7, which requires that you give up all of your items that are not exempt, chapter 11 doesn’t’ require you to forfeit any of your personal assets. The main thing you need to show is that you have a good source of income (or at least a thorough plan for getting one) and that you have the means to pay off your debts.
Of course, the court will keep a close eye on you to be sure you are operating according to the plan and paying off your debts on time, but this is far better than having to shut your doors.
If the court judges that you do have the ability to pay off your debts, than it’s simply time to execute your plan. However, before any of this, the most important step is to find a good lawyer who can look over your personal information and advise you on whether or not you have the ability to apply for chapter 11.
Very simply, many debtors understandably would prefer this option because of the flexibility it gives them, and of course, the ability to keep their business, but simply are not realistic about their future prospects. A lawyer will be able to quickly tell you whether or not you have the capacity to file for chapter 11 or not.
Before you meet with your lawyer, be sure you understand the chapter 11 bankruptcy definition thoroughly and all the requirements you need in order to file for it. if not, you very likely will not qualify. Of course, the lawyer will be able to advise you on all this when you actually meet, but being as prepared as possible is always a good thing.