CHAPTER 11 BANKRUPTCY
Traditional Chapter 11 Bankruptcy
This is the most common type of Chapter 11 bankruptcy and is used by businesses seeking to reorganize their debts and continue their operations. The debtor develops a plan to repay creditors over time while maintaining control of their assets and operations.
Small Business Chapter 11 Bankruptcy
This type of Chapter 11 bankruptcy is specifically designed for small businesses with debts under a certain threshold. It streamlines the process and provides certain cost and time-saving benefits to make reorganization more feasible for small business owners.
Sub-chapter V: Chapter 11 Bankruptcy
Introduced in 2019 under the Small Business Reorganization Act (SBRA), Subchapter V is a modified version of Chapter 11 bankruptcy aimed at small businesses with debts up to a certain limit (currently $7.5 million). It offers an expedited and less complex reorganization process, making it more accessible and affordable for qualifying small businesses.
Single Asset Real Estate (SARE) Chapter 11
This type of Chapter 11 bankruptcy is for debtors who own a single property or project that generates income, such as a commercial building or apartment complex. SARE Chapter 11 allows the debtor to propose a plan to restructure the debt related to that specific property while continuing to operate it.
Pre-Packaged Chapter 11
In a pre-packaged Chapter 11 bankruptcy, the debtor and certain creditors negotiate and agree on a reorganization plan before filing for bankruptcy. This allows for a quicker and more streamlined bankruptcy process, as the plan is already agreed upon by key stakeholders.