You may have taken on too much debt and are now deciding to file bankruptcy.
There is a huge difference in the cost of filing for a Chapter 7 and Chapter 11 bankruptcy. The filing fee for Chapter 11 bankruptcy case is $1,717. The filing fee for a Chapter 7 case is $335. Also, a debtor that files under Chapter 11 bankruptcy must pay a Chapter 11 quarterly fee to the United States Trustee. The exact figure is calculated based on the disbursements during the three-month calendar. However, the debtor is expected to pay at least $325 every three months, even if there is no disbursement. Additionally to comparing Chapter 7 and Chapter 11, it is important to understand Chapter 7 vs. 13 Bankruptcy as well.
The cost of hiring an attorney depends on how complex the bankruptcy case is, where the case was filed and the attorney involved. Generally, the average cost of hiring a Chapter 7 attorney is between $1,000 and $1,750. On the other hand, the average cost of hiring a Chapter 11 bankruptcy ranges between $10,000 and $25,000 for a small case, while a medium case usually costs an average of $50,000 for a medium-sized Chapter 11 case. For large and complex cases that involve multi-nationals and large corporations, the cost can be as high as $500,000.
Make sure you keep in mind that Chapter 7 bankruptcy requirements vary from state to state. This means that a Chapter 7 bankruptcy in Pennsylvania may look different than a Chapter 7 bankruptcy in Missouri. Be aware of how these requirements may be different in your state.
Chapter 11 individual cases
Individuals who think they qualify for bankruptcy may also file under Chapter 11 bankruptcy. The requirement for filing for a Chapter 11 bankruptcy case as an individual is the same as a business. As such, most individuals who seek debt reorganization apply under Chapter 11 bankruptcy because it is less strict.
If an individual has a debt that exceeds the limit of filing under Chapter 13 bankruptcy, the next most reasonable debt reorganization method in Chapter 11 bankruptcy. Chapter 11, bankruptcy is more prominent among individuals who have assets and high income.
Other Things to Consider:
You can file a Chapter 7 bankruptcy without hiring an attorney. This is because the process of filing under Chapter 7 bankruptcy may be a pretty straightforward process. The only problem the debtor may face without hiring the services of an attorney is that they stand at a risk of getting their property liquidated based on the bankruptcy exemptions. So for example, if you decide to file a Nevada Chapter 7 bankruptcy, you may want to check the bankruptcy exemptions in Nevada before filing
However, due to the complexity of Chapter 11 bankruptcy, you may have no choice but to hire an experienced Chapter 11 bankruptcy lawyer. Regardless, it is great that there is now this greater understanding of Chapter 7 vs Chapter 11. The process of re-organizing a Chapter 11 bankruptcy is a very complex one. Even more complex than a Chapter 13 or Chapter 7 bankruptcy.
The rules and guidelines can confuse even a brilliant attorney who doesn’t have experience in handling this type of case. Thus, you may find it somewhat overwhelming if you try filing under Chapter 11 bankruptcy yourself. It is in your best interest to hire an attorney as it will help to protect your asset. Nevertheless, filing for bankruptcy is dependent on where you are in the country, for example, if you are filing Chapter 13 or Chapter 7 in Maryland, some things will be different compared to a different state.