Preparing for A Chapter 11 Bankruptcy

Facing an obligation is a must for every business. For example, owed money used to help finance their business must be paid back. But there may come a time that a business cannot pay for their obligations anymore. Of course, one cannot simply run away from what they owe. If they really do not have the means to pay for their credits, legal process must happen. 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. As an example, Chapter 11 bankruptcy is one of the most popular types. And just recently, KODAK filed for a Chapter 11 bankruptcy.

When one files for a chapter 11 bankruptcy, it does not mean that they can legally not pay what they owe. 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. Here are the following requirements one needs to meet for chapter 11 bankruptcy:

Means Test

• This is a necessity for a Chapter 11 bankruptcy.
• 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 is the best option you have.

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 contact information, the amount of money owed, and the creditor’s account number must also accompany the list.

Filing Fee

• There will be a corresponding fee upon the submission of Bankruptcy form 3A. Although there are variations on the amount, it is usually around U.S $ 1, 000.

Whenever one files for a bankruptcy, people do not consider it surprising at all. So, there is no need for one to be ashamed whenever there is a need to file for one. However, being careful is a necessity here. In fact, in Arizona, people are getting help from 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.