Chapter 11
In The Tulsa Oklahoma Area
Filing fee $1,717
Chapter 11 is designed for the reorganization of a business but is also available to individual debtors. Chapter 11 is the only reorganization alternative if the debtor has debts above the Chapter 13 eligibility maximums. There is no legal maximum duration for a Chapter 11 plan. Creditors have the right to vote on whether to accept a debtor’s plan, and also have the right to propose their own plan. Debtors can not sell assets without the Court’s permission. Debtor’s can only keep a checking account at a bank that meets certain standards, and must identify themselves as “Debtors in Possession”, Debtors must obtain a federal tax ID number. Debtors must file monthly operating reports with the Court and they must pay a quarterly fee to the Office of the U.S. Trustee. After the Chapter 11 case is filed (usually within a week) there is an initial debtor interview with a member of the U.S. Trustee’s office where many of the rules of operation are explained to the debtor.
Advantages:
- Debtors usually get to keep their assets, with few exceptions.
- Allows for many of the same advantages as a Chapter 13.
Disadvantages:
- Significantly more expensive than both Chapter 7 and Chapter 13 because a Chapter 11 requires more time and effort from both the debtor and the attorney. Often times, the attorney fees alone are well over $25,000.00