subject: Prerequisites In Filing For A Chapter 11 Bankruptcy [print this page] Businesses have obligations they need to faceBusinesses have obligations they need to face. As an example, paying back the money they owe to help finance their business is a must. However, there may be circumstances when a business cannot pay for it anymore. Of course, one cannot simply run away from what they owe. Filing legally is required if ever a business cannot anymore pay their debts. In legal terms, this is called bankruptcy. Businesses can avail on the different types of bankruptcy that are suitable for their situation. As an example, Chapter 11 bankruptcy is one of the most popular types. On an interesting note, KODAK recently filed for a Chapter 11 bankruptcy.
Debts still need to be paid even if one has filed for a Chapter 11 bankruptcy. This bankruptcy will only make restructuring of debts and reorganizing business operations possible so that a plan can be made regarding how you can pay for what you owe. In order for one to successfully file a Chapter 11 bankruptcy, the following must be met:
Means Test
Chapter 11 bankruptcy considers this as a fundamental requirement.
Completely filling up the U.S. Bankruptcy form 22b must happen so that your income can be assessed.
This test will ensure that a reasonable restructured repayment plan can be builded up.
As there are other bankruptcy options available, this will also determine if the chapter 11 bankruptcy is your best option.
Petition
Chapter 11 bankruptcy will require everyone to completely fill out a petition.
Matrix of Creditors
In line with the U.S. Bankruptcy Code, creditors must be listed. This list should also contain information like the creditors contact information, the amount of money owed, and the creditors account number.
Filing Fee
Submission of Bankruptcy form 3A requires one to pay for a corresponding fee. Although there are variations on the amount, it is usually around U.S $1, 000.
It is not all surprising whenever one files for a bankruptcy. There is nothing to be ashamed in case you need to file for one. However, being careful is a necessity here. Arizona is quite an example on how they ask for help from trusted Arizona bankruptcy lawyers.
