How Long Does Chapter 11 Take?

Bankruptcy can take varying amounts of time to complete but most Chapter 11 bankruptcy plans are complete within six months to two years. read on to learn more.

The fee for filing Chapter 11 bankruptcy is $1,717 but you can reckon on spending in excess of $10,000 on legal fees. Business owners who file for Chapter 11 bankruptcy will discover it is not a simple process.

Chapter 11 Versus Chapter 13

Both plans allow for business reorganization but with a Chapter 11 bankruptcy, a trustee does not always have to be appointed. If they are the review the plan or reorganization and make recommendations to the court, They also undertake the responsibility of collecting payment as well as the distribution of payments. To qualify for Chapter 13 your bills cannot be in excess of $1,184,200 in secured debt, and $394,725 in unsecured debt.

Businesses who are struggling need more time to get back on their feet. Chapter 11 bankruptcy can assist in this. it all starts with a the filing of a detailed petition. Chapter 7 progresses quickly, since creditors do not get to vote on the plan of reorganization. But Chapter 11 requires many court hearings and that is why it can take in excess of a year.

Source: https://www.debt.org/bankruptcy/chapter-11/