What is Chapter 11 bankruptcy?

Chapter 11 bankruptcy is a type of bankruptcy filing available in North Carolina that can help individuals and businesses reorganize their debts and finances. This type of bankruptcy allows companies or individuals to work out a repayment plan with creditors that is approved by the court. It is a way to get more control over debt payments and to reduce the amount of money owed. Chapter 11 bankruptcy is also known as "reorganization" because it allows for a restructuring of debt payments so that the debtor can pay off their debt over time. The main goal of Chapter 11 bankruptcy is to allow the debtor to stay in business while making payments to creditors. During the reorganization process, creditors may have the ability to vote on the proposed repayment plan, make a settlement offer, or agree to a different repayment plan. Once the repayment plan is approved by the court, the debtor must then adhere to the terms of the plan. In some cases, this may include setting aside a portion of their income to make payments to creditors each month. These payments are usually based on the individual ability to pay. Once the repayment plan is complete, the debtor is able to receive a discharge from their debt. Overall, Chapter 11 bankruptcy is an important option available in North Carolina to help individuals and businesses restructure their debts. If you are looking for a way to manage your debt and finances, you should consider discussing Chapter 11 bankruptcy with a qualified attorney.

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What is Chapter 11 bankruptcy?

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