Chapter 11 bankruptcy is the most common form of bankruptcy for large businesses that hope to restructure their debt as it has no limits on the amount of debt, but it is also available to individuals. In a Chapter 11 bankruptcy, the debtor typically maintains possession of its assets, and it operates under the oversight of the court for the benefit of its creditors. The debtor becomes a fiduciary for the creditors, and if its management is questionable or ineffective, a trustee may be appointed.
In large Chapter 11 bankruptcies, a creditors committee is appointed from among the 20 largest unsecured creditors, and this committee represents all of the creditors in supervising the debtor's operations and negotiating its reorganization plans. If debtors are unable to secure the committee’s confirmation on its plan, it may be able to have the plan confirmed despite the opposition of the creditors by satisfying certain statutory tests.
The rate of successful Chapter 11 reorganizations is very low, so it is essential to work with a qualified and experienced attorney to guide a company, partnership or individual through the entire process. Our bankruptcy lawyers in Miami as well as our offices in Broward and West Palm Beach are experienced with complex Chapter 11 bankruptcies for both debtors and creditors.