• Chapter 11 bankruptcy is designed to provide a business with the ability to restructure its debts and reorganize its operations. Through Chapter 11 bankruptcy, a business develops a plan designed to make its operations more efficient and ultimately profitable. This type of bankruptcy also gives a business the opportunity to negotiate its obligations to creditors under the supervision and oversight of the court. In order to file for Chapter 11 bankruptcy, certain requirements must be met.
  
  

Means Test

• A fundamental requirement of Chapter 11 bankruptcy is what is known as the means test. The means test involves completing U.S. Bankruptcy Form 22B, a worksheet that demonstrates how much income the debtor brings in during an average month. The worksheet compares this with outstanding liabilities. The purpose is to determine whether a restructured repayment plan reasonably can be developed. If there is not reasonable prospect of paying off this debt over time, with restructuring and reorganization, a Chapter 11 bankruptcy is not a viable option.
  
  

Petition

• The debtor must completely fill out a petition as one of the Chapter 11 bankruptcy requirements. Nothing can be left blank on the petition, even if a particular section does not apply. In such a circumstance, the space must be marked "N/A or "not applicable." Many court clerks return bankruptcy petitions for revisions if something on the document is not completed.
  
  

Matrix of Creditors

• Pursuant to the U.S. Bankruptcy Code, a debtor seeking to pursue a Chapter 11 bankruptcy must list all creditors on what is called the matrix of creditors. Basic contact information, the amount owed by the debtor and the account number must also be included within the matrix for each individual creditor.
  
  

Filing Fee

• The U.S. Bankruptcy Court requires the payment of the full fee at the time of the filing of the case or the submission of a Bankruptcy Form 3A. Form 3A is a request to pay the filing in installments. The filing fee varies from one individual bankruptcy court to another. The fee for a Chapter 11 bankruptcy tends to be in the neighborhood of $1,000.