Call for a free bankruptcy consultation

Louisville |


New Albany |

Schwartz Bankruptcy Law Center

What is Chapter 11 bankruptcy?

There are many types of bankruptcy that a company may consider when seeking relief from debt. The type that is familiar most is Chapter 11, though if asked, many people may not know exactly what this form of bankruptcy entails. It may be helpful for companies, and at times individuals, in Kentucky to gain a basic understanding of this type of debt relief.

When a petition to seek Chapter 11 bankruptcy is filed, an automatic stay of all debt collections is put into effect. This allows a debtor the time to develop feasible repayment options without constantly worrying about collections and potentially mounting late fees. During this time, the bankruptcy court also supervises the debtor's process as it develops a repayment plan for its creditors. The debtor is required to file monthly operating reports in order to keep the court apprised of its progress.

Filing for Chapter 11, versus other types of bankruptcy, has a goal of ultimately returning a company to profitability. This is typically attained by the reorganization of debts and the negotiation of contracts and leases. This could allow debts to be partially repaid or even discharged in some circumstances.

Determining whether to seek bankruptcy can be a difficult decision. Even after deciding to pursue this path, the decision of whether to file for Chapter 11 or another type of bankruptcy can be confusing. An experienced Kentucky bankruptcy attorney can assist in evaluating the many options. Based upon a company's unique financial position and goals, an attorney can discuss the various forms of debt relief and recommend the options that can help his or her client along the road to financial solvency.

Source: FindLaw, "Chapter 11 Bankruptcy", Accessed on Aug. 31, 2016

No Comments

Leave a comment
Comment Information
Make A Payment Email Us For a Response

Need A Solution To Your Debt Problems?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Make A Payment
Schwartz Bankruptcy Law Center

Office Locations:

Louisville Office
3339 Taylorsville Road
Louisville, KY 40205

Phone: 502-785-8549
Phone: 502-485-9200
Fax: 502-485-9220
Louisville Law Office Map

New Albany Office
501 State Street
New Albany, Indiana 47150

Phone: 502-785-8549
Phone: 812-945-9200
Fax: 502-485-9220
Map & Directions