Chapter 11 Bankruptcies — Individuals
The process of filing a Chapter 11 and obtaining confirmation of the debtor’s Chapter 11 Plan can be quite complex and costly. Accordingly, most Chapter 11 bankruptcy cases are filed by business entities. However, individuals are not precluded from seeking Chapter 11 relief, and in appropriate cases – usually involving individuals with large liabilities or engaged in complex business dealings – Chapter 11 bankruptcy may be the best solution for an individual with financial problems.
A typical individual Chapter 11 client is one who falls into one of three categories: 1) an individual who has a lot of complex, usually business-related liability but also a lot of assets and/or high income, which can be used to fund or otherwise support a Chapter 11 Plan; 2) an individual who does not fall within certain parameters required for Chapter 7 or Chapter 13 bankruptcy; 3) an individual with a business that could be disrupted by a Chapter 7 bankruptcy; or 4) an individual who needs to reorganize liability but who also needs greater flexibility in order to accomplish his or her goals.
One of the reasons that many individuals try to avoid a Chapter 11 bankruptcy is because the law governing individual Chapter 11 bankruptcies is not very different from the law governing business Chapter 11 bankruptcies. Accordingly, the requirements of such a bankruptcy can be quite onerous on an individual. Nevertheless, a Chapter 11 may be a needed solution for an individual in financial straits. It may be the only way for an individual to keep creditors at bay while retaining his or her assets, business or income. Further, Congress recently has recently enacted the Small Business Reorganization Act which makes it much easier and less expensive for a small business to reorganize under chapter 11.
Rosefelt Tax Law has extensive experience in guiding individuals and businesses through bankruptcy minefields. Daniel Rosefelt, Attorney & CPA has also helped many taxpayers solve both their tax and financial problems through the bankruptcy process. In addition to his law degree, Mr. Rosefelt is a Certified Public Accountant, former Adjunct Professor of Law, and has published articles concerning bankruptcy tax relief in national tax journals. Mr. Rosefelt has also spoken to a variety of professional tax and accounting organizations nationally about the discharge of taxes in bankruptcy and the treatment of federal tax liens and levies in the bankruptcy process.
Looking for a Maryland, Washington DC or Florida bankruptcy attorney? With offices in Bethesda, Maryland and Saint Petersburg, Florida, Daniel Rosefelt & Associates, LLC routinely helps clients in Maryland, Washington, DC and Florida. Contact Daniel Rosefelt & Associates, LLC to learn more about our services and for an initial case review. Contact us by calling our offices at 866-995-0061 or completing our Contact Form contained on this website.