Originally Posted by
Excargodog
Anyone desiring to reorganize their business can file Chap 11 as long as they can pony up the $1039 or so necessary to file and the quarterly cost of a US Trustee.
Legally, anyone except a governmental agency, an estate, a nonbusiness trust, a stockbroker, a commodity broker, an insurance company, a bank, or an SBA-licensed small business investment company may file under Chapter 11. An individual may not file under Chapter 11 if he or she has had another bankruptcy case dismissed upon certain grounds within the last 180 days. As a practical matter, Chapter 11 is available to virtually any business or person able to afford the expenses of the case.
If the judge doesn’t like the reorganization plan or the creditors have valid complaints, he/she may not grant the filer relief from their debts, and may even reject the reorganization plan and appoint a trustee to manage the bankruptcy but the judge has no mechanism to simply refuse a filed petition as long as the person isn’t in one of the above prohibited categories.
Upon filing a voluntary petition for relief under chapter 11 or, in an involuntary case, the entry of an order for relief, the debtor automatically assumes an additional identity as the "debtor in possession." 11 U.S.C. § 1101. The term refers to a debtor that keeps possession and control of its assets while undergoing a reorganization under chapter 11, without the appointment of a case trustee. A debtor will remain a debtor in possession until the debtor's plan of reorganization is confirmed, the debtor's case is dismissed or converted to chapter 7, or a chapter 11 trustee is appointed.
https://www.uscourts.gov/services-fo...kruptcy-basics
I stand corrected let me rephrase.
You file THEN A judge approves the reorganization plan. The judge STILL HAS TO APPROVE your plan. I believe that only 10% of filings that are brought to a judge and requesting approval for chapter 11 are accepted.
Just because I file a lawsuit towards someone, does not necessarily result I’ll win the the case after being presented.
If you bring your plan of reorganization for your business to a judge with 42 billion in debt, and 10 million cash burn per day, GOOD LUCK having that approved.
The result of not receiving chapter 11 approval by a judge, would result in the dreaded chapter 7.