Denver Chapter 11 Bankruptcy

Chapter 11 bankruptcy is similar to chapter 13 bankruptcy in that chapter 11 allows a corporation or individual to restructure debt and make affordable payments over an extended period of time.

Chapter 11 is usually used by large corporations (think GM, Circuit City, every Airline at one point, etc) but small businesses and individuals can use chapter 11 bankruptcy if appropriate.

Individuals who might file chapter 11 bankruptcy include real estate investors with more than $1.02 million in mortgage debt, professionals (doctors, lawyers, accountants) that own their own firm but have too much debt associated with that practice; and small businesses that have too much secured debt relative to the value of assets but have okay cash flow.

Chapter 11 bankruptcy allows individuals to reorganize secured debt, sometimes reduce their secured loans down to the market value of the assets securing the loan, and make affordable payments to unsecured creditors. For example, a real estate investor with $2.0 million of mortgage debt but the underlying real estate is only worth $1.2 million may benefit by filing chapter 11 bankruptcy and eliminating $800,000 of that mortgage debt.

Give Denver bankruptcy attorney, Matt Berkus a call today at 720-545-0339 to learn more about Chapter 11 bankruptcy.