If you are looking to reorganize a corporation, limited liability company or other entity, or if you are an indivdual seeking to reorganize debts which exceed the Chapter 13 debt limits, you may consider filing a chapter 11 case.
A Chapter 11 bankruptcy allows corporations and other legal entities to restructure business debts in order to continue operating. Chapter 11 is also often a viable option for individuals to reorganize personal or business debts. In most cases, it is preferable for consumers to reorganize their financial affairs with a Chapter 13 plan, rather than a Chapter 11 plan. However, there are situations where Chapter 13 is not available, or will not produce the best result. For instance, if the amount of your secured debts or the amount of your unsecured debts exceeds the debt limits set forth in Section 109(e) of the bankruptcy code, you most likely will not be eligible to file a Chapter 13 case. Also, Chapter 13 plans are limited to five years in duration. If you need more time to organize your financial affairs, Chapter 11 may be a better option for you.
Chapter 11 cases are much more complicated than Chapter 13 cases and involve significant legal work. Accordingly, the fees for Chapter 11 cases are typically much higher than the fees for Chapter 13 cases.