Services for Chapter 11 of the Bankruptcy Code in Racine and Kenosha, Wisconsin

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How Does Chapter 11 of the Bankruptcy Code Work?

Chapter 11 lets you pay back your creditors, in whole or in part, over an extended period of time.

Chapter 11 lets you pay back your creditors, in whole or in part, over an extended period of time. Perhaps the biggest benefit of Chapter 11 is its ability to let you restructure mortgages on your investment property. You may be able to lower, or “strip down,” the principal balance of your mortgage to the current market value of the property, reduce the interest rate, wipe out arrearages and re amortize the loan. You can remove second and third mortgages and judgment liens from underwater properties, including your home. You can catch up payments owed to the IRS and state taxing authorities (including property taxes). Unlike Chapter 13, there is no limitation on the amount of debt, or its type, to qualify for Chapter 11.
The filing of a Chapter 11 will stop pending foreclosures and lawsuits. It can stop wage garnishments, bank attachments, liens and levies (even IRS tax levies).
Sound too good to be true? It's not. That's simply what a Chapter 11 filing is designed to do.
A Chapter 11 starts when your petition is filed with the Court. Documents relating to income and expenses, debts, property (real estate as well as personal property—your “stuff”), and other financial disclosures must be prepared and filed.
Filing a petition under Chapter 11 stops most collection actions. The automatic stay stops foreclosures, garnishments and attachments—as well as creditor calls and letters—as soon as you file the petition.
Most Chapter 11 cases take between six and twelve months between filing and when your Chapter 11 Plan is approved, or confirmed, by the Court.
Chapter 11 cases are the most difficult and complex under the Bankruptcy Code. Chapter 11 wasn't really designed for individuals and small businesses, and many of the hoops you must jump through are the same ones that a large company must jump through. You need bankruptcy counsel who isn't put off by a Chapter 11. It's an involved and complex process. And to be honest, it isn't cheap. But the benefits of a Chapter 11 can be enormous. Very few consumer and small business bankruptcy attorneys have the knowledge or experience to handle your Chapter 11 case.

Get Your Free Initial Consultation

If you are seeking financial relief, you can find it here at The Michelson Law Office – Bankruptcy Only. We provide free initial consultations to our customers. People who are considering filing for bankruptcy are entitled to a free initial consultation. If you think Chapter 13 might be the right choice for you, contact our office today to schedule your consultation.

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