How do I know if I am eligible for a Chapter 11 bankruptcy?

In Nebraska, you may be eligible for Chapter 11 bankruptcy if you meet certain criteria laid out by federal law. In this type of bankruptcy, individuals can reorganize their debts in order to have an easier means of repayment. The first criterion is that your debts must exceed a certain amount of money. Specifically, your total nonpriority unsecured debt must be over $2.5 million and your total secured debt must be greater than $1.1 million. Additionally, you must demonstrate that you have the ability to repay your creditors and that you have made a good faith effort to do so. In addition to satisfying the debt criteria, you must also prove that you are capable and willing to continue managing your business. This means having a comprehensive business plan that can demonstrate success and a willingness to continue operating. Additionally, you must provide information about your current income and debts. Ultimately, the court will decide whether or not Chapter 11 bankruptcy is the best option for you and your situation. The court may also review the business plan you have submitted to make sure that it is realistic and feasible. If the court approves your Chapter 11 filing, then you will be able to reorganize your debts with the protection of the court while making your payments.

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How do I know if I am eligible for a Chapter 11 bankruptcy?

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