180 Day Rules

• Chapter 11 bankruptcy cannot be filed if a bankruptcy petition was dismissed in the previous 180 days. Additionally, a bankruptcy petition cannot be filed unless the debtor has obtained credit counseling from an approved credit counseling agency in the previous 180 days.
  
  

Reorganization

• Chapter 11 bankruptcy is usually used in an effort to reorganize a business such as a corporation, partnership or sole proprietorship. Individuals are eligible to file Chapter 11 bankruptcy, but usually an individual should seek Chapter 13 bankruptcy relief instead.
  
  

Filing a Plan

• The filer has 120 days to file a repayment plan under the bankruptcy petition. The court can reduce, or extend, this time period based on individual status. Extensions cannot exceed a total time of 18 months. After this period has passed, a creditor or the case trustee may file a competing plan.
  
  

Debts Not Covered

• Chapter 11 bankruptcy protection does not cover relief from debts such as alimony, child support, certain taxes, certain educational loans or benefits overpayment, personal injury lawsuit payments and criminal restitution debts. Debtors will be responsible to repay these debts on their own, considering a payment plan was not reached under a Chapter 11 bankruptcy proceeding.
  
  

Eligibility

• To file a Chapter 11 bankruptcy, a debtor must be engaged in commercial or business activities. The total non contingent liquidated debts, secured and unsecured, cannot be more than $2,190,000. The bankruptcy case must be one that the United States trustee has not appointed a creditors' committee to, or the court has determined the creditors' committee is not sufficiently active to provide oversight of the debtor.