Chapter 11 Bankruptcy
Chapter 11
The third chapter a US consumer debtor could file under is Chapter 11, which refers to the reorganization of business debts. It is usually used by businesses such as Chrysler; however, individuals can technically file under Chapter 11 if their debts exceed the debt limit for a Chapter 13 or if they are trying to avoid having a Trustee intimately involved with the process. Of course, the fees associated with a Chapter 11 are often cost-prohibitive and are often so high that even small businesses find it difficult to successfully reorganize under Chapter 11.