Chapter 11 in Peoria is often referred to as reorganization bankruptcy. An individual trying to file a Chapter 11 in Peoria cannot do so if, preceding 180 days, a prior bankruptcy petition was dismissed due to the debtor’s failure to comply with the orders of the court. Filing a Chapter 11 in Peoria can be an alternative if an individual simply wants to reorganize his/her financial situation.
When filing a Chapter 11 in Peoria, the courts are required to charge a $1,000 case filing fee and a $46 miscellaneous administrative fee. These fees may be paid on an installment basis to be determined by the bankruptcy courts. Debtors should be aware that failure to pay these fees may result in the dismissal of the application of Chapter 11 in Peoria.
Filing a Chapter 11 in Peoria is typically used to reorganize a business. This could be a corporation, sole proprietorship, or partnership. A Chapter 11 in Peoria involving a sole proprietorship includes both the business and personal assets of the owners-debtors. As with Chapter 7, filing a Chapter 11 in Peoria does not discharge debts pertaining to child-support, student loans and certain taxes.
When filing a Chapter 11 in Peoria, a reorganizational plan must be filed with the court. Adequate information must be contained in the plan as to how the debts are to be paid off and the time period for each payment. The debtor has a 120-day period after filing the Chapter 11 in Peoria, during which he/she has the exclusive right to file the plan. After this grace period, a creditor may file a competing plan.
Don’t get overwhelmed with provisions that come with filing a Chapter 11 in Peoria. Let the experts from Rafool, Bourne and Shelby PC help you. Contact us today.