While Chapter 11 bankruptcies are normally utilized by businesses, individuals can also pursue this option. Doing so takes a bit of work however, as Chapter 11 can be more complicated than Chapter 7 or 13, which most people go for when filing for bankruptcy. Debt.org explains what you need to know if you choose this debt relief option and how you can ensure the best possible results.
Much like Chapter 13, Chapter 11 bankruptcy reorganizes debt into a manageable payment plan, which entails making payments over a period of time. A person can opt to file or can be forced into filing for Chapter 13 when receiving petitions from three or more creditors. A repayment plan is then created, and creditors get to vote on whether it’s accepted. If not, you have the option of requesting a cramdown, which means creditors will be forced to accept it. You may also want to take the plan offered by creditors to protect your property.