Chapter 11 - anyone had experience??

[texanboy76]

I just spoke with my attorney and we are going to file a Chapter 11 BK as my Ch 7 was deemed bad faith but they still allowed me to push into a 11 or 13. Yes I understand it's costly however it's my only way to move forward with restructuring my case. Can anyone share their experiences from Chapter 11 and what it entailed? I did a search but came up blank...

[justbroke]

You're not going to find much, especially on here. There are a couple of us here, including myself, that were on the verge of filing a Chapter 11. The number of consumer Chapter 11s is so small, it will be hard to find much "reliable" information.

Again, a couple of us have gone through the research and preparation to file. There may be at least one member who has actually gone Chapter 11.

A Chapter 11 can be expensive from a legal services perspective. One Chapter 11 attorney in my area tells clients that his fees are $20-30K on an average consumer Chapter 11 case. Most of those fees are up front too.

[HHM]

Well, to provide any sort of insight, it would be helpful to know why you need to go chapter 11. As Justbroke points it, it is rare, but certainly not unheard of.

The most difficult thing you will run into is the monthly reporting requirements. You will have to provide monthly income and expense statements. Plus, the look back for asset transfers is 4 years. Also, your creditors can have a greater a say over your plan. Finally, there is no bankruptcy trustee, the United States Trustee is the one who gets involved in chapter 11's.

Basically, a chapter 11 is a huge commitment, so you really want to make sure it is the best option and worth it.

[justbroke]

I still like the title "Debtor in Possession". It's about the best thing being in a Chapter 11. The worse thing is... the creditors voting on your plan.

[kw1025]

I looik into chap 11 at first as i have alot of property assets. It is a big responsibility and like everyone said, it is expensive. PLus you will need to make many more court apperances. Is there no way you can do a 7 and buy back some assets?

[texanboy76]

I looik into chap 11 at first as i have alot of property assets. It is a big responsibility and like everyone said, it is expensive. PLus you will need to make many more court apperances. Is there no way you can do a 7 and buy back some assets?

The issue stems around my housing payment. The Ch 7 was presumed "bad faith" however they are going to allow me to explore the Ch 13 option...

[HHM]

Well, if the reason for the bad faith was the amount of your mortgage payment, that issue doesn't go away in a chapter 13. If your mortgage payment is presumed to be too high, that effects all chapters of bankruptcy.

What exactly was the issue with the mortgage payment in the chapter 7. Was it both the 1st and the 2nd mortgage, combined that was too high, or would they still object even if you only had the 1st mortgage payment.

[texanboy76]

In speaking with my lawyer he mentioned the reason for 11 is due to fact that I have many moving parts with my income and the ch 13 bankruptcy trustee won't understand. My only worry is that the UST had a major bone to pick in my Ch 7 case and i'm afraid he's going to carry that into my 11 filing.