Chapter 11 bankruptcy is not just for businesses facing financial stress. You can also file as an individual in certain situations – but what differences are there from a business filing? Our Madison lawyers can explain more about filing business or individual Chapter 11 bankruptcy, and what you may need in order to succeed.
The process of filing for Chapter 11 bankruptcy is largely the same for a business and an individual in Madison, NJ, but there are a few differences. If an individual is filing, they are likely required to complete a pre-filing credit counseling course under the Bankruptcy Code. Fortunately, this is not a difficult task.
A Madison attorney representing in individual or business in Chapter 11 bankruptcy would provide the specific documents and information that we anticipate will be needed once the case is immediately filed, like tax returns, bank statements, and other financial documents. But for a business, that may also include things like financial reporting, which an individual may not be required to provide.
For a business to file a bankruptcy, it is largely case-dependent. There are generally two types of bankruptcy filings: those that are planned and those that are required. Required bankruptcies occur in situations where a bankruptcy petition needs to be filed to avoid the loss of property, assets, or income. For those that are planned, the timeline can be as little as one month, and as much as one year, depending on the circumstances of the case and the benefit to the client.
The timeline for an individual filing is similar to that of a business in terms of being a required filing or a planned one. Often, individual filings have a shorter timeline, but may have longer timelines depending on the complexity of the case. The important evaluation, from the time we are hired as an attorney, is identifying those issues and addressing them prior to filing.
An individual filing for Chapter 11 bankruptcy would need to provide a government-issued photo ID like a driver’s license or a passport, proof of their Social Security number, the last two filed federal and state tax returns, proof of their income, W-2 forms, bank statements reflecting all active bank accounts including brokerage accounts, and if they own real estate, we will need a copy of the deed, an appraisal, information about the property. Depending on the circumstances, there could be other requirements.
In most cases, the individual will be required to provide proof of insurance on any real estate or other assets, or possibly proof of insurance regarding their professional status.
You should be to meet with an experienced bankruptcy attorney to consider whether a Chapter 11 is in your best interest. Assuming that it is, an attorney can provide you with the documents and information you need to successfully proceed with the filing. It will likely be somewhat different than if you were a business filing for Chapter 11, so it is wise to speak with an experienced attorney from Gillman Capone. Please contact us for a case evaluation today.
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