When Florida debtors qualify for Chapter 13 bankruptcy, they might still choose to file under Chapter 11. Despite the greater expenses and complications of Chapter 11, researchers discovered that increasing numbers of individuals were opting for Chapter 11 protection. The ABI Endownment Fund commissioned the study, which found that individuals were entering the Chapter 11 process in increasing numbers.
The strict deadlines required for Chapter 13 dissuaded many individuals from selecting that option. These people tended to have high incomes, run businesses, possess many assets and maintain high debt loads. Their large real estate portfolios and substantial mortgage debts required reorganization plans that exceeded five years.
When analyzing the results of these filings, the study reported that these cases succeeded more often when they included real property and joint filings. Low or no-asset cases avoided dismissal or conversion at a lower rate. Debtors represented by an inexperienced attorney or no attorney experienced less success.
A person who needs more information about these and other debt relief options could benefit from consultations with an attorney who has experience with these types of matters. After analyzing the income, assets, and debts of the individual, an attorney could explain the pros and cons of filing for bankruptcy under the different chapters of the law. Information about methods that could protect a home or allow a business to continue operating could be provided as well. To prepare for filing, a bankruptcy attorney could organize the financial records of the client and draft the required repayment plan and submit it to the court for its approval.
