Before you file chapter 11 bankruptcy you should consider what other options are available. Sometimes we can work out your loans in a way that keeps you in business and allows you to continue to operate your business or avoid foreclosure. However, sometimes when all other options fail, you may need to file chapter 11.
Chapter 11 is more complicated than other types of bankruptcy. First, your bankruptcy plan is voted upon by your creditors. Second, when you file chapter 11 you have the duties and responsibilities of the trustee. This means you need to file monthly reports showing all income and expenditures, set up special bank accounts, and sometimes you need to change your accounting practices.
Chapter 11 can be an effective way for those who have too much debt to file chapter 12 or 13. Chapter 11 will stop foreclosure, repossession or other collection attempts and leave you in charge of how your finances will be managed.