Essentials in Filing for A Chapter 11 Bankruptcy

Facing an obligation is a must for every business. As an example, paying back the money they owe to help finance their business is a must. Then, situations may happen making a business not able to pay for it. There are laws that cover this situation so one cannot simply run away. They have to file legally that they do not have the means to financially pay for it. This is the situation among businesses filing for a bankruptcy. Businesses can avail on the different types of bankruptcy that are suitable for their situation. In fact, a certain type of bankruptcy called Chapter 11 bankruptcy is considered to be one of the most popular. And just recently, KODAK filed for a Chapter 11 bankruptcy.

Debts still need to be paid even if one has filed for a Chapter 11 bankruptcy. Paying for what you owe is still a must but the type of bankruptcy filed will make sure that your debts and your business operations will be restructured and reorganized in such a way that it can be possible for you to pay. So, if ever you plan to avail of this chapter 11 bankruptcy, here are the requirements you need to meet:

Means Test

Chapter 11 bankruptcy considers this as a fundamental requirement.
• In order to assess your income, a U.S. Bankruptcy form 22B should be filled up completely.
• This test will also determine how a reasonable restructured repayment plan can be developed.
• This test will also determine if Chapter 11 bankruptcy will work best for your situation or another type must be utilized.

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. The creditor’s list should also accompany their contact information, the amount of money owed, and the 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.

These days, bankruptcy is not anymore a surprising situation. There is nothing to be ashamed in case you need to file for one. However, filing for a bankruptcy will require one to be cautious. Arizona is quite an example on how they ask for help from trusted Arizona bankruptcy lawyers.

Steve Anderson is one of the lawyers of Pew Law Center. Arizona Bankruptcy Lawyer  help people get the protection and debt relief they need under federal bankruptcy law.