Does filing for Chapter 11 bankruptcy protect me from criminal prosecution?

No, filing for Chapter 11 bankruptcy in Florida does not protect you from criminal prosecution. Chapter 11 bankruptcy is a form of reorganization in which the debtor (person filing for bankruptcy) attempts to restructure their debt and repay creditors at a reduced rate over a period of time. When you file for Chapter 11 bankruptcy, an automatic stay is put in place that prohibits creditors from taking any further action to collect on the debt. This includes criminal prosecution for unpaid debts. However, criminal prosecution is not related to the debt itself and is instead related to an alleged criminal act. Filing for Chapter 11 bankruptcy does not protect you from criminal prosecution for alleged acts that would otherwise have been subject to criminal punishment. In Florida, a criminal prosecution for any alleged criminal act would still be pursued even if bankruptcy has been filed. Also, bankruptcy fraud is a federal offense, so filing for bankruptcy could open you up to criminal investigation and potential prosecution. In conclusion, filing for Chapter 11 bankruptcy in Florida does not protect you from criminal prosecution. If you commit any illegal acts, you could still be subject to criminal prosecution even if you have filed for bankruptcy protection.

Related FAQs

What is “cramdown” in a Chapter 11 bankruptcy?
How do I get back on my feet financially after filing for Chapter 11 bankruptcy?
Can I keep my business open during a liquidating plan in a Chapter 11 bankruptcy?
Is there a means test for Chapter 11 bankruptcy?
What happens to secured creditors in a Chapter 11 bankruptcy?
What is a “reaffirmation agreement” in a Chapter 11 bankruptcy?
How is a liquidating plan approved in a Chapter 11 bankruptcy?
What is debtor-in-possession (DIP) financing?
How does the automatic stay protected me from creditors during a Chapter 11 bankruptcy?
What is a “debtor-in-possession budget” in a Chapter 11 bankruptcy?

Does filing for Chapter 11 bankruptcy protect me from criminal prosecution?

Related FAQs

Related Blog Posts