When an individual is struggling with accumulating debts, it is likely that he or she has considered filing for bankruptcy as a solution to this situation. However, it's easy to become overwhelmed with the different choices in regard to all of the bankruptcy chapters.
Chapter 11 is worth considering as an individual if you have a high-earning potential while facing substantial debts. It is considered by many as the most flexible bankruptcy chapter, so it can be a great way to be lucrative and creative when reorganizing your debts.
How does Chapter 11 bankruptcy work?
Chapter 11 bankruptcy was created for and is still used primarily for businesses; however, it is also possible, although rare, for individuals to also benefit from the terms of the chapter. The basic premise of Chapter 11 bankruptcy is that it is possible for filers to be able to reorganize their debts and to have some of their debts dismissed. The main goal of Chapter 11 is to help the person or business filing to analyze and rearrange their cash flow so that they are able to become profitable. These profits can then be used to pay off the debts that have accumulated over time.
What makes Chapter 11 bankruptcy so flexible?
Chapter 11 bankruptcy is so flexible because many rules and regulations can be negotiated and changed depending on the specific circumstances and the priorities that the filing debtor has.
If you are interested in filing for Chapter 11 bankruptcy as an individual in the state of Florida, it is a good idea to understand more about the pros and cons.