Lefkovitz & Lefkovitz
Nashville Office 615-686-2279 Cookeville Office 931-400-2218
Serving all of Middle Tennessee's Bankruptcy Needs

Chapter 11 bankruptcy for individuals

Tennessee consumers who are in debt may be eligible to file for Chapter 11 bankruptcy. Despite popular belief, the Chapter 11 bankruptcy is not intended only for companies.

Individuals who are not able to qualify for Chapter 13 may be able to reorganize their debt under Chapter 11. They may revamp the debts they owe on investment properties, get current with their mortgage payments and pay a substantially reduced amount for the medical and credit card debts they may owe. However, there are distinct differences between Chapter 11 and Chapter 13 bankruptcies.

Unlike with Chapter 13, there is no cap to the amount of debt an individual can have under Chapter 11. The debtors are also not required to have income. Many of the debtors who file for Chapter 11 are able to sell assets to fund their Chapter 11 plan.

While the Chapter 13 process allows debtors to maintain their current financial accounts, most debtors who file for Chapter 11 are required to close all of the bank accounts they had and open a debtor-in-possession bank account. All income or any other funds the debtor receives must be funneled through the DIP account. Chapter 11 bankruptcy also requires all individual debtors to file monthly reports noting their expenses and income, while Chapter 13 applies this requirement only to debtors who are operating a business.A bankruptcy attorney may advise individuals who have substantial debts about their legal options. The attorney may examine a client's financial situation and determine what chapter, if any, would be the most suitable.

No Comments

Leave a comment
Comment Information

We Look At Your Case From Every Angle To Find The Solution That Is Right For You

Bankruptcy help for everyone, from the most simple to the most complex cases.

Call Us Now To Schedule A Free Initial Consultation

Contact our Nashville office at 615-686-2279 or our Cookeville office at 931-400-2218. You can also reach us via email to set up a time to talk to us about your debts.

Get Legal Help Now

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Nashville Office
618 Church Street, Suite 410
Nashville, TN 37219

Phone: 615-686-2279
Fax: 615-255-4516
Nashville Law Office Map

Cookeville Office
312 East Broad Street, Suite A
Cookeville, TN 38501

Phone: 931-400-2218
Fax: 931-526-6244
Cookeville Law Office Map

Back To Top