Call for a free bankruptcy consultation

Louisville |


New Albany |

Schwartz Bankruptcy Law Center

Who qualifies for a Chapter 11 bankruptcy?

Because most of the Chapter 11 bankruptcies that make the news are larger and oftentimes nationally known organizations, some owners of smaller Louisville, Kentucky, businesses may think that a Chapter 11 bankruptcy is just not for them.

In reality, though, by filing for Chapter 11, lots of businesses can eliminate business debt and have the opportunity to restructure so that they have the chance of continuing to operate in the years to come. For a small business owner who wants to keep his or her enterprise afloat, Chapter 11 can prove to be a financial lifesaver.

The eligibility requirements for filing a Chapter 11 are relatively broad. While of course the business will have to prove that it meets the basic rules of filing for any bankruptcy, really the key question is whether it can convince the bankruptcy court that, with a temporary stay on debt collection and a little reorganization, the business will be able to turn a profit again.

On the other hand, a Chapter 11 will likely get dismissed or converted to a Chapter 7 business bankruptcy if it appears the business has no chance of surviving in the long run. Unlike Chapter 7 for individuals, a Chapter 7 for business is simply a court-supervised sell off of the business's assets.

It is also worth noting that wealthier individuals may also file for Chapter 11 bankruptcy, although this is relatively rare. Most individuals, even high earners, prefer either Chapter 13 or Chapter 7.

Although a small Kentucky business in distress can and should consider filing for Chapter 11 bankruptcy, the actual process is complicated and is generally accomplished with the help of an experienced business bankruptcy attorney.

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