What are the requirements for filing a Chapter 11 bankruptcy?

Filing a Chapter 11 bankruptcy in Virginia requires meeting certain requirements. To start, the debtor must be a business entity in Virginia, such as a corporation, partnership, limited liability company, or other legal entity. Alternatively, the debtor may be an individual in the Commonwealth of Virginia. The debtor must also provide the court with a statement of current monthly income, a list of creditors, and a list of assets and any associated liens. In addition, the debtor must submit a list of all business contracts, leases, and unexpired licenses that they are a party to. Finally, they must provide a plan of reorganization, which describes the proposed repayment of their creditors. Before filing the petition, the debtor must also pass the “means test”, a financial analysis to determine whether they meet the requirements of Chapter 11. If the results of the means test show that the debtor’s income is too low to realistically enter into a repayment plan, then the court may order a Chapter 7 bankruptcy instead. It’s important to note that the filing fee for a Chapter 11 bankruptcy is significantly higher than for other types of bankruptcy. Additionally, there are often other costs related to filing, such as legal and administrative fees. All of these costs can add up quickly, so it’s important to be aware of them before filing.

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What are the requirements for filing a Chapter 11 bankruptcy?

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