Business Bankruptcy Law
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Chapter 11 & Chapter 12
Business Options for Different Circumstances.
Individuals and corporations can file for Chapter 11 bankruptcy. Most often Chapter 11 is used for businesses, however. This type of filing is suitable for any business organization that wants to remain in business after bankruptcy instead of closing down and liquidating. Chapter 11 makes the most sense in when a business or individual’s debt is very large, or where they owe a lot of business debt through a sole proprietorship.
Only families within the farming or fishing industries can file for Chapter 12 bankruptcy. There is a debt limit that determines whether you can make this filing. Also, as a family farmer you can make this filing only if more than half of your debt accumulated due to farming operations. This filing may also apply to partnerships or companies in the farming and fishing business - under unique circumstances.