There are different chapters of bankruptcy laid out in the Bankruptcy Code and it is important to determine which chapter most closely applies to your situation. Chapter 11 is often referred to as “reorganization” bankruptcy. A business or individual cannot file for bankruptcy under Chapter 11, or any other chapter, if during the preceding 180 days a prior bankruptcy petition was dismissed due to the debtor’s willful failure to appear before the court or comply with orders of the court, or the debtor voluntarily dismissed the previous case after creditors sought relief from the bankruptcy court to recover property upon which they hold liens.
To begin a petition must be filed with the Court. This may be voluntary, filed by the debtor, or involuntary, filed by creditor(s). Other documents must also be filed including, but not limited to, schedule of assets, schedule of current income, schedule of executor contracts or unexpired leases, and a statement of financial affairs. The Court charges a $1,000 case filing fee and a $46 miscellaneous administrative fee.
Generally, a written disclosure statement and plan of reorganization is filed with the court. This information is governed by judicial discretion. The court will then determine whether to confirm the plan.