Tag Archives: chapter 11

The Ninth Circuit makes life much more difficult for individual Chapter 11 debtors

Debtors considering a personal bankruptcy under Chapter 11 previously had an edge in California that gave some added leverage against classes of creditors. A Ninth Circuit decision last year, however, eliminated that edge. Overview of the Bankruptcy Chapters As most lawyers and many lay people know, there are several types of bankruptcy cases – Chapter 7 (liquidation), Chapter 11 (reorganization) and Chapter 13 (wage earner reorganization) being the most common. In a Chapter 7 case, the debtor surrenders all non-exempt property to a trustee, who liquidates it for the benefit of the debtor’s creditors. In most cases, the debtor is Read More