Individual Chapter 11

It is a common misperception that Chapter 11 bankruptcy in Arizona is for businesses only. But certain individual circumstances can benefit from Chapter 11 bankruptcy rules.
Those Arizona residents that might not qualify Chapter 7 bankruptcy or Chapter 13 bankruptcy may find that the higher debt limits of individual Chapter 11 better fit their needs. But because Chapter 11 bankruptcy is more complex, it is vital to have experienced bankruptcy lawyers representing an individual Chapter 11 filing.

With secured debts over $1,081,400 or unsecured debts higher than $360,475, individuals may end up filing Chapter 11 bankruptcy in AZ. Section 109(e) of the Bankruptcy Code prevents individuals from filing bankruptcy if they have excess debt, and the debt limit automatically adjusts every three years. Chapter 11 bankruptcy is similar to Chapter 13 bankruptcy in that debts are reorganized and repaid.

Through individual Chapter 11 bankruptcy Arizona residents can protect some assets, such as investment property or businesses, while they get a fresh start from other types of debt by working a repayment plan. For individuals looking for a loan modification on investment property, Chapter 11 provides an opportunity to reduce debt, adjust interest rates and amortize the mortgage loan over a longer repayment period.

Unlike other forms of bankruptcy, Chapter 11 is incredibly complex. A Chapter 11 bankruptcy is complicated, and the repayment plan must be approved by the creditors it addresses. The bankruptcy attorneys at Radix Law, in Phoenix and Scottsdale, AZ, are one of the few law firms in Arizona to regularly represent people in their individual Chapter 11 bankruptcy with success.

If individual Chapter 11 bankruptcy is not right for your circumstances, then a knowledgeable bankruptcy lawyer will help you determine exactly which bankruptcy process best fits your individual needs. But if you do require an individual Chapter 11 bankruptcy, then you will want to have an experienced law firm in your corner.