Can an individual file Chapter 11?

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Can an individual file Chapter 11?

I own a small restaurant with a liquor license valued at $35,000. I am a sole proprietor. If I file for Chapter 11 to get rid of my credit card debt of 65K, will the judge ask me to sell my liquor license? I would like to continue my business. It is my sole income.

Asked on November 10, 2011 under Bankruptcy Law, California

Answers:

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 10 years ago | Contributor

Yes, an individual can file Chapter 11, but why not file a Chapter 13?  Do you have secured debts that exceed the $1,081,400 limit?  Chapter 11 is extremely involved and expensive.  Initial attorneys fees will likely be between $25,000-$50,000 which is almost what you owe on the credit card debt.

As far as selling your liquor license, assets are not involuntarily sold in either Chapter 13 or Chapter 11.  You must value the asset and it is used in the liquidation analysis in part to determine how much your monthly payment must be to your creditors.

I suggest consulting with a bankruptcy attorney in your area about your options.

 

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

bankruptcy blog: http://bklaw.com/bankruptcy-blog/

Follow Me on Twitter:  @bklawr

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 10 years ago | Contributor

Yes, an individual can file Chapter 11, but why not file a Chapter 13?  Do you have secured debts that exceed the $1,081,400 limit?  Chapter 11 is extremely involved and expensive.  Initial attorneys fees will likely be between $25,000-$50,000 which is almost what you owe on the credit card debt.

As far as selling your liquor license, assets are not involuntarily sold in either Chapter 13 or Chapter 11.  You must value the asset and it is used in the liquidation analysis in part to determine how much your monthly payment must be to your creditors.

I suggest consulting with a bankruptcy attorney in your area about your options.

 

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

bankruptcy blog: http://bklaw.com/bankruptcy-blog/

Follow Me on Twitter:  @bklawr


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