Chapter 11 Bankruptcy
Even though there are many different types of bankruptcy, Chapter 11 Bankruptcy, also known as Re-organization Bankruptcy, involves Corporations or Partnerships. Like a Chapter 13 case, Chapter 11 allows business’s to propose a payment plan and pay back creditors over a period of time with lower interest rates. Although, Chapter 11 Bankruptcy allows the people in the business or individuals to seek relief within the Chapter 11 case. The major difference between Chapter 11 and 13 is that it is geared towards a business more than an individual and the fees that are applied to it. The mandatory filing fee is $1,000 with an addition of a $39 Miscellaneous Administrative fee. If a joint petition is signed, then only one filing payment is necessary. If the debtor fails to pay these fees, there is a great chance that the case will be dismissed. Also, during the case and payment of debt, the business may have to pay the court trustee quarterly ($250 up to $10,000) depending on how much is dispersed during each quarter.
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