Bankruptcy Type Chapter 11

Choosing types of bankruptcy for wealthy individuals and businesses

From a cursurory reading of the applicable statues, you will notice that income restrictions do not apply in Chapter 11. The debtor is not required to be actively engaged in business, and debtors are not restricted by minimum or maximum income restrictions. In effect, any one who qualifies as a debtor under Title 11, U.S.C. Section 109 may file Chapter 11. For more information, see:

Only people who live in the United states, or own a place of business, or own property with the U.S. may file Chapter 11. Notice that citizenship is not required, and neither is is residency within a state or territory. State jurisdiction is based upon state residency only, and citizens living abroad may rely upon property ownership as a means of claiming federal jurisdiction.

An important aspect of qualifying for types of banruptcy under Chapter 11 is the payment of attorney fees. For an individual to file Chapter 11, expect attorney fees, costs and expenses to exceed $5,000 for bare minimum compliance and little else. Also be aware this bankruptcy type is popular for wealthy individuals, who - after continuing financial operation for a period of time while paying expenses, salaries ,and fees - frequently conclude few if any assets are available for distribution.