When you are looking over your Fort Worth bankruptcy options, you are probably looking at the differences between the two main types of filing for individuals, Chapter 7 and Chapter 13. Other chapters of the bankruptcy code, such as Chapter 11, may not seem to pertain to individuals, as they are geared more toward businesses. However, there are instances where individuals who do not qualify for either Chapter 13 or Chapter 7 may file an individual Chapter 11 Dallas bankruptcy.
Individuals & Chapter 11
The circumstances do not occur terribly often for an individual to be advised to file individual Chapter 11 bankruptcy. In the majority of individual Chapter 11 cases, the filer has too much debt to file Chapter 13 and does not otherwise qualify for Chapter 7 filing. This can occur if the bankruptcy filer has too much reported income to qualify under the “means test” for filing Chapter 7, and has unsecured debt of more than $336,900 or secured debt of $1,010,650 or more, making the person ineligible to file under Chapter 13. In such cases Chapter 11 is the only way to go.
The individual Chapter 11 process is much like a Chapter 13 or a business Chapter 11, with many of the same benefits including the automatic stay and the ability to organize debts under a repayment plan. In almost all other respects an individual Chapter 11 bankruptcy looks just like a Chapter 13 filing, except that under Chapter 13 the repayment period is flexible, with terms from 3 to 5 years, and under Chapter 11 the repayment period is fixed at 60 months. At the end of those 60 months, the individual will receive full discharge and the bankruptcy will be closed.